There are strategies you can follow that will help you increase your credit score, and keep your credit score where you want it. Having your credit score be the best it can be is important if you plan on making a large purchase in the future. Showing a solid trend of good credit and responsible choices can help you get the purchase you want to make with a reasonable interest rate. Creditors want to see that they will get their money back without a hassle. So right now there are things you can do to increase your score. Below here are ten things to take into consideration.
1. Check your credit report – You are allowed one full copy of each of the three credit reports each year for free. In addition to disputes, you can also have good accounts added that are missing.
2. Remove negatives from your credit report – If there are any negatives on your credit report that seem incorrect, repetitive, or unfair, then you can dispute these issues with the credit agency or directly with the creditor. This is where identity theft can be erased as well. If you keep an eye on your credit report, you can keep the negative off, and keep adding the positive.If you would like to reach out professionals to take care of this process for you, we suggest hiring a reputable company like Credit Repair Las Vegas .
3. Increase your credit – This does not necessarily mean open a new credit card or spend more money. Basically, the credit agencies look at your revolving credit. This means that if you use a lower percentage of your credit line available, it will increase your credit score. It shows responsibility. You can easily ask your creditor for the increase in limit. But do not do it if they need to check your credit score to do so. A company checking your credit is a hit to your score.
4. Pay off your debt – This is the obvious tip. The less money you owe on the credit extended to you, the better your score will be. That is why reducing your debt as much as possible will help increase your score. This also lowers the amount of interest you will pay. This may take time, but overall it is the best thing you can do for your score.
5. Spend less money – In addition to lowering your revolving credit, charging less on your credit card in general will increase your credit score. The credit bureaus look at your statement’s closing balance, not how much you paid off of it that month. The less you charge the better it will look.
6. Consolidate – Having more than one credit card from the same issuer does not make sense first of all. Second, consolidating the cards together will increase the average age of your revolving debt and does not reduce your total credit limit. Just contact the issuer and ask if this is possible.
7. Pay your bills on time – One of the most important and simple things you can do to increase your credit score is to pay all of your bills before it is due. Each time you are late on your payments; your credit score takes a hit. Set up automatic payments or create a calendar and stay organized.
8. Be patient – Did you know that the big negatives, such as a debt going into collections, can last for seven to ten years on your credit report? If it is fair and accurate, you will not be able to get it removed. Although this cannot be avoided, what is done is done, use it as a lesson learnt going forward, and do these other things to help increase your score.
9. Watch for identity theft – You should do everything you can to prevent identity theft. This crime is going up in numbers, and it can seriously affect your credit score. Some things you can do to prevent identity theft include – review all of your account statements and look for anything incorrect, avoid sharing personal details on social media or anywhere for that matter, use an RFID protected wallet, and choose hard to guess passwords.
10. Have accounts in your name – If you do not have any accounts, such as savings, checking, or a utility bill, in your own name and not shared, then you should consider opening one. You have to build your own credit in your name and start building your credit history.