How to raise your credit score
Repairing bad credit can be as tough as losing weight. It will take time and patience as there is no quick way to fix a credit score. All the quick fix efforts to improve a credit score are likely to backfire. Besides, be aware of the advice that claims to raise your credit score quickly. The first step that you can take is to get your credit history repaired before you improve your credit score. Below you can find a few tips on how you can raise your credit score.
3 Important Steps To Take Right Now
Confirm Your Credit Report
Repair of credit score starts with confirming your credit report. You can begin by requesting for a free copy of your credit report and check for errors. The data contained in your credit report will be used to calculate your credit score and at times it might contain errors. Check carefully if there is any data listed incorrectly for any of your accounts and if the amount that you owe is correct. Contact the credit bureau immediately if you find any error on your report.
Setup Payment Reminders
The biggest contributing factor to your credit score is to make credit payments on time. Many banks offer payment reminder services so that you never miss the due date. You can also get yourself enrolled in automatic payments through your loan provider and credit card issuer to get the payments automatically debited from your bank account.
Get The Debt You Owe Reduced Gradually
Getting your debt reduced can be difficult but once you have achieved it, nothing else can be more satisfying than that. By reducing debt, you can gradually improve your credit score. You can start by restricting your credit card usage and paying off your existing debt first. You can either start with paying the debts with high interest first or pay off the low interest first, while you maintaining minimum payments on the other accounts.
Tips On How To Fix And Maintain Good Credit
The best way to improve your credit score is to avoid doing something that could sink it further. The two major mistakes are to miss payments and pay less. Other mistakes that could affect your credit score include taking cash advances and using your credit cards at a pawnshop or a divorce attorney.
The amount of money you owe will contribute 30% to your FICO Score. Maintaining financial discipline and understanding a few tips will help you to raise your credit score.
- Keep your balances low on credit cards
- Avoid high outstanding debt
- Try paying off debt instead of moving it around
- Never close unused credit cards
- Never open a number of new credit cards that you do not require
When you know you will be needing credit soon, you should be less focused on your credit score. Instead focus on paying your bills and using credit responsibly. Your smart spending behavior will soon get reflected on your credit score card.
Whenever you are planning to make a huge purchase such as a car or a home, you should plan in advance and have a look at your credit status. If a lender denies credit then the lender will have to show you the credit score it used. Regularly checking your credit report is a smart way to stay updated about its status.
All payment history contributes 35% to a FICO score calculation and has a great effect on improving credit score. Missed and late payments problems are hard to fix, therefore, make sure you pay all your bills on time. The longer you take to pay your bills, the more your FICO score will increase. With timely payments, the impact of your past credit problems will start fading from your FICO Scores.
If you are having trouble with making timely repayments, contact your creditor. They will help you to manage your credit and make payments on time. Seeking assistance from a credit counseling service will never affect your Credit Scores.
You should remember that if you wish to raise your credit score, it will not happen overnight. They may take you years. The credit bureau will take into account all your past behavior found on your credit report and not just your present actions.