Boosting your credit score can unlock tons of perks and rewards in your personal life. If you dream of owning a home and being financially stable, you simply must keep your credit score in a solid, impressive state. To help you achieve this dream, here are seven proven ways that you can boost your credit score:
Credit builder cards are the new and hip thing in building your credit score. You can build credit while avoiding debt by using these fancy credit options responsibly, after all. Because there is no APR associated with them, and you can earn cashback rewards by using them consistently, they are a perfect option for those who are just beginning to build their credit. Even those with an already impressive credit score can find a lot to love about credit builder cards, so check them out!
While it may seem like a no-brainer, you should make timely payment of all of your bills a top priority, because it is one of the factors that most significantly influences your credit score overall. Set up calendar reminders, alarms, or automatic drafts if you frequently forget when a payment is due to make sure it is paid in full on time. The more vigilant you are, the faster you’ll be able to improve your credit score.
Your credit report may contain erroneous information, but that can be changed with a dedicated mindset. To have errors corrected, get in touch with the creditor and the credit bureau, and inform them of mistakes. You must give the credit agency a thorough description of the mistakes and any supporting documentation if you want to dispute any errors on your credit report. The agencies normally investigate and react in 30 to 45 days, so be patient.
You might believe that it’s ideal to completely close a credit account if you pay off the debt or have no outstanding balance, but doing so can actually lower your credit rating (even if that seems surprising). Even when an account is closed, it will still be listed on your credit report, which will lower your ratios of balance to limit and consequently lower your credit score. For this reason, keeping the account open, and continuing to use it minimally (and responsibly) is recommended.
As long as you’re being responsible with your spending and paying your payments on time, having and using credit is generally a positive thing. You might believe that not using credit at all or not having credit cards at all is preferable, yet someone who uses credit responsibly might have a higher credit score. You’ll have a hard time building credit at all if you don’t have at least a few credit accounts to show how responsible and financially savvy you are.
Do not be hesitant to ask a professional for assistance if you require help managing your finances and credit score. You can set achievable short- and long-term goals with the aid of credit counselors and financial experts, who can also assist you in getting back on track. There are a ton of valuable, affordable credit counselors out there, so never trick yourself into thinking this is a luxury that’s completely out of your reach. Depending on your situation and profession, you might even be able to write their services off on your taxes!
You won’t be able to raise your credit score by redistributing your debt throughout your accounts. The best option available is to come up with a realistic plan for paying off your credit card debt. A slow-and-steady process is recommended and entails paying down your highest interest-rate credit card as much as you can while maintaining minimum balances on the other cards. After you’ve paid off the first card, you transfer the money you had set aside to the card with the next-highest interest rate. Then, you just need to continue down this path till you find success with your credit score.
By following these seven valuable tips, you can easily begin building your credit score. To lead your dream life, and unlock perks that will make your life much easier, you need a fantastic credit score. If you stay on top of your finances and avoid risky investments, you’ll see your credit score rising to impressive new levels in no time at all!