Is your credit score lower than you want it to be? In that case, you probably know that a low credit score can be a huge financial burden to bear.
Your low score can make you seem like an unwanted customer to companies you want to do business with and it can make it much more expensive for you to borrow money – if you can be approved for a loan at all .
The good news is that you are not stuck with an unusual credit score forever. There are simple steps you can take today to increase your score and end up with someone who opens doors for you instead of imposing financial obstacles. Here are four of the steps you should consider taking.
1. Configure Automated Payments
While you probably have the best intentions on paying credit cards at the right time, life gets in the way and you forget to submit your check within the deadline or sign in to make the payment. Unfortunately, a single missed credit card payment can cause your point to fall by more than 100 points.
To ensure that your credit points never make a big success because you do not submit your payment according to the plan, you need to set up your cards to automatically prepare at least the minimum payment from your bank account. While paying your balance in full each month, if you can, pay at least at least automatically that you are never accidentally late.
Your payment log is one of the most important factors determining your points. So if every debt is paid on time automatically, you will develop the kind of positive payment history that will earn you top marks.
2. Requesting Credit Line Increases
Having more credit available to you also helps increase your credit score. After all, the second most important factor that determines your score – after the payment history – is the credit value.
To calculate your credit usage, benefit your outstanding debt balance with the credit you currently have. The more credit available, the lower the utilization rate will be when you make this calculation, even if you end up with a credit card balance. You will have a much better utilization if you owe $ 1000 on a card with a $ 10,000 limit compared to one where you owe $ 1000 with a $ 2000 limit.
The good thing about asking for credit increases is that many Lenders will adjust the credit limit upwards without a hard request. Hard queries are posted on your report after you request a new credit, and they remain on the report for two years. If you stay too many, your credit score will get a hit. Confirm with the credit issuer that you do not agree to undergo a hard credit check to get your credit card raised; Otherwise, the inquiry can hurt yourself as the higher credit limit helps you.
3. Keep Your Credit Loans Low
Keeping your credit balance low also allows you to maintain the low credit value that gives you the highest credit value.
There is no reason to balance your card to build credit, and lenders prefer you spend less than 30% of your available credit. Keeping your balance low is also helpful in avoiding costly interest rates, which can hurt you financially in other ways, as well as just reducing your credit score.
It is important to know that creditors report your outstanding balance at different times during the billing period. So even if you pay off the credit card balance in full, you appear to have a high balance depending on when the card issuer reports to the credit reporting agencies. If you find that your card shows you owe a few thousand dollars, even if you always pay off the balance, you can find out when the card issuer reports to the credit reporting agencies and pays your balance before that date.
4. Ask the creditors for some help
Everyone makes mistakes. And if your credit points aren't perfect, this may be because you've previously made them in connection with your credit accounts. Maybe you missed a payment on a credit card or even a default on a debt in the past. If so, your bug report can remain on your credit report for many years, and you can reduce your credit score.
One way to deal with these past issues: Ask creditors to forgive them. You can write a letter or email to a creditor that you have generally been a good customer with and ask them to remove a late payment record from your credit history. They can say yes. You can even try to negotiate with a lender you have defaulted on and ask if they are clearing the record of default if you pay your outstanding balance in full.
Although there is no guarantee, a creditor will work with you to help increase your credit score, it takes little effort to ask. You may be pleasantly surprised if you end up seeing negative information removed and your points going up as a result.
Try these tricks to increase your credit
Now you know how to increase your credit score. Hopefully, by trying out some of these tips, your score will go up steadily over time. Before you know it, you will be in the top echelon of borrowers given the very best deals and approved for credit with any lender of your choice.