17 Apr Easy Ways to Increase Your Credit Score
8 Simple Ways to Increase Your Credit Score
In today’s world, it is important to manage your credit rating. A negative credit report can severely impact your finances by forcing you to pay higher interest rates. To better secure your financial future and avoid high interest rates, it is in your best interest to increase your credit score.
8 Things You can do to Increase Your Credit Score:
1. Check your credit report
- There may be errors on your report that you can challenge. The more you know about your spending and what you owe, the better you are able to allocate your finances towards not only paying off your debt, but providing for yourself and your family in the period before your next paycheck arrives.
2. Pay your debts on time
- Nothing looks better than when you pay your debts on time. This all reflects on your credit report, which is viewed not only by prospective creditors but possibly by prospective employers as well.
- If you’ve skipped a bill or two, pay it off as soon as possible. You want to stay up to date with all payments in order to better your credit rating.
3. Do not move debt from one card to the other – pay it off instead
- The longer you wait to pay your debt off, the higher your interest rate will be. The higher your interest rate, especially one you can’t pay off, the lower your credit score.
4. For small purchases, use one card that has the lowest interest rate instead of different cards
5. Don’t apply for new credit cards unless you really need to (and have a good enough credit to maintain it)
- Too many cards, all with outstanding debt, will negatively affect your credit score.
- They also show up as an inquiry on your report and let creditors know you may be accumulating more debts.
6. Don’t close old accounts that are in good standing
- This shows creditors that you have a good track record of paying off your debt in a timely manner and it shows the total length of your credit history.
- On the other hand, do close unused or unnecessary store cards.
7. Under-utilize your credit card
- Try and keep your credit usage only to “in case of emergency” situations, and be sure that you never max out your limit. Inform your credit card company of your limit and don’t change it. The higher the limit, the more tempted you are to use your card.
8. If you’re recently single, make sure your joint account is too
- This is for those who have joint accounts with significant others – if you separate from one another, ensure that your finances do the same. Once that is done, ask the reference agencies who deal with credit for a notice of dissociation (so that your credit history won’t be affected by your ex’s spending and vice versa).
If you would like any more information about increasing your credit score, contact Ranieri Law LLC.
Call for a FREE Consultation 1-866-300-6174