Your credit scores are a very important part of your overall financial strength. This score is a reflection of your total personal credit history and is a major factor that will be used when you are looking to take out any type of loan, obtain a credit card, or even rent an apartment. As this score is very important, checking it regularly and improving it when possible is always beneficial. There are various tips that you can follow that could help you see a sizable increase in your credit report and score.
Check Report Regularly
One of the most important tips to follow if you want to increase your score is by checking your credit regularly. Your credit report is an aggregation of all of your current and recently past credit accounts. It is very important that you check your report to ensure there are no signs of fraud or mistakes made by the creditors or reporting agencies. Ideally, you should check your report at least a few times per year and even sign up for a credit monitoring service.
Get Rid of Inaccurate Information
If you check your report and score and notice that it is low due to inaccurate information, you should try to get this information removed immediately. The best place to start is by contacting the creditors listed on your credit report. They should provide a phone number that you can call to speak with someone at the company. The company will be able to look into the account to see if it was listed as a mistake. If it was not, it could be a sign of fraud. When this happens, there could be a time-consuming process to have the account removed from your report. However, eventually, it should be removed completely and you should see an immediate and significant increase in your score.
Pay Down Balances
One of the most significant factors that is going to impact your score and creditworthiness is how much outstanding debt you have on revolving accounts, which typically include credit cards and home equity loans. Generally, you should aim to keep these balances lower than 25% of the total credit limits that you have. If there are higher than this, it could be problematic and start to negatively impact your score. Reducing your balances will not only improve your score immediately, but it can also help you save money on high-interest costs that come with revolving accounts.
Pay All Bills on Time
If you want to build a strong credit score for the long haul, paying your bills on time is the most important factor to consider. If your history of making payments on time is the most significant factor that will influence your report and score. Even one late payment can have noticeable effects on your score. Due to this, you need to ensure that you keep your financial records organized and have a list of bills due each month. Staying organized and paying bills on time will continue to contribute to a strong and healthy score, which will continue to build each time you make a successful payment.
Anyone that is looking to make a major purchase, move into a new home, or even switch jobs should make sure that their credit score is accurate and as high as possible. By following these tips, you can learn more about your credit history and get the support needed to check your score. These tips will also give guidance on how you can improve your score and keep it high in the future.
