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Getting the right credit score has been quite a challenge for many people. However, such a score will guarantee you many things. This means that if your credit score has gone down then you need to go out of your way and work on increasing your credit score. Fortunately, there are ways to get there quickly, and this guide will focus on how to improve your credit score.
be on time with your bills
Your payment history accounts for about 35% of your credit score. Given these prices, you really need to make sure that your bills are paid on time to avoid losing out on valuable points. If you’ve been sitting on those bills, now is the time to get up and settle them all. It is also pertinent to understand that accounts which are delinquent for more than 90 days attract the highest negative score. So, start with the payments that have been overdue for a long time, then rush to meet the most recent payments as well and remember to pay them in full.
Commit yourself with a credit card
Having an active credit card or two is also a surefire way to improve your credit score. If you qualify as a responsible card holder, there is no way your credit score will go down. Being responsible means making your payments on time. If you don’t qualify for a traditional credit card, you can try a secured card. The more this card requires you to make a down payment, the more it helps you repair your credit score.
Avoid opening multiple new accounts
Every time you take out a new credit card, the company always checks your credit health rigorously. Opening multiple accounts means more scrutiny. If too many inquiries are made on you, then your credit score will definitely get affected while applying for the card. This is because these checks are linked to people who are desperate to get credit and it is best to minimize them.
Limit your utilization rate
Although it is advisable to have a credit card to improve your credit score, do not overuse this card. About 30% of your credit score is based on your credit utilization and the lower this value, the better your score. Calculating your usage is easy. Just divide your credit balance by your credit limit and anything between 0-20% is fine. Otherwise, limit the spending that you do on your credit card or you can even talk to your provider to increase your limit.
don’t close old accounts
If you are thinking of closing your old credit accounts to make more room for new ones in your wallet, think again. About 15% of your credit rating is based on your credit history. This means that if you have old credit accounts, your chances of getting a better score easily are quite high. By closing your old accounts, you are limiting your history to the age of your oldest credit card which will lower your score.
negotiate where possible
As much as you might want to have everything in order, there are times when you just aren’t able to meet a payment or two. This falling behind on payments can ruin your score but you can work your way past that. If you’ve lost your job somewhere along the line, make your creditors aware of it and ask them to recall any collection notices they may have put on your account. You can also ask for goodwill adjustments from some of your creditors. Not many people actually do this but you’d be surprised how smart they can be.
In today’s living conditions it is not possible to live without credit. No matter how bad your credit score is, you always have a chance to revive it and enjoy more credit. These simple tips will help you breathe new life into your credit score which will eventually bring it up.
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