We are going to teach you 10 tips to boost your credit score :
1 – Stop applying for too much credit
If you apply for too much credit within a short period of time, the hard inquiries on your report can reflect negatively on your overall score.
2 – Get on track with your payments
Because making payments accounts for 35 percent of your credit score, paying on time or early each month is the single most powerful tool you can use to improve your credit score.
3 – Rearrange your debts
If your debt utilization is 90 percent on one card and 5 percent on another card, it hurts your credit. Transfer your percentage of the balance from your maxed out cardd to the cards with little utilization. This little trick may boost your credit score almost immediately.
4 – Increase your limit
The best way to achieve this is to call your lender and ask that they increase your credit limit. If they agree and the limit is increased, your utilization percentage will go down, making you look like a responsible spender and a good investment to lenders.
5 – Reduce your debt loads
Lenders do not like to loan money to people who are drowning in debt and struggle with making payments. 30ù of your credit score is based on how close you are to your credit limits on your revolving accounts. We recommend you keep your utilization under 50%.
6 – Always keep a small balance on your cards
To keep your account open, you need to be using them consistently. Keeping a small balance on your credit cards and remaining in good standing will allow you to keep your accounts open and in good standing. On the other hand, not using your accounts may lead to your accounts getting closed which will in turn damage your credit score.
7 – Do not close your old credit card accounts
If you were to close an older account, your lenght of credit history will suffer. Also, when you close an account your credit utilization ratio increases, which also hurts your score.
8 – Open and maintain a healthy credit mix
FICO Scores will consider your mix of credit cards, retail accounts, installment loans, finance company accounts and mortgage loans. Don’t worry, it’s not necessary to have one of each but having a couple or more and keeping them in good standing can help you boost your credit score.
9 – Get a copy of your credit report monthly
You need to know exactly what’s on your credit report to keep track of your progress. You can get a copy of your credit report from Transunion, Equifax and Experian credit reporting agencies. You can also use a free service like Credit Karma in order to monitor your report.
10 – Dispute inaccuracies
If you find something on your credit report that you do not agree with or is inaccurate, you can begin the dispute process. When you contact credit bureau they will ask for proof of your claims. After they make a determination, the credit bureau will adjust your report.