The journey to get your credit score higher isn’t a sprint,
but a marathon. A good score will help you quality for premium rewards credit
cards and low interest loans. However, you have to take note that the process
actually takes time. You may get started by checking your credit score for you
to see where you stand.
- Determine Your Credit Utilization Rate
Make sure to weigh all of your balances that are relative to
your credit limit. This will ensure that you aren’t using too much credit
available, which is a practice that may indicate risks. If the ratio is high,
it means that you will earn fewer points and your scores will surely suffer.
One of the things that can influence your score is credit utilization. Your
rate may differ depending on your scoring system.
- Always Stay on Top of Your Payments
Keep all of your debts in green to show lenders that you are
responsible with credit. You have to take note that your credit score is a
reflection of ability to pay back the debts effectively. From the perspective
of a lender, established history of timely payments can be a good indicator
that you will handle future debts in a responsible manner. You might like to
avoid things including repossessions, defaults, late payments, third party
collections, and foreclosures. It’s also a horrible idea to file bankruptcy.
Anything that could indicate non-performance of liabilities will harm your
credit score.
- Consider Score-Boosting Programs
The average age and number of your accounts are both
essential factors to help lenders determine how good you handle debt that may
leave those who have limited credit history at disadvantage. For this reason,
consider score-boosting programs for you to boost thin credit profile with some
financial information.
- Leave Your Old Debts on the Report
Once you get rid of your student debt or you have
successfully paid off your car loan, you might be impatient to get the traces
of them wiped from your report. However, as long as your payments were complete
and timely, the debt records might help your credit score. It’s the same with
credit card accounts. Any bad debts that might impact your credit score in a
negative manner are removed over time automatically.
Each time you apply for new credit liner, hard inquiry will
be pulled on your report. This kind of inquiry lowers the score temporarily.
Generally, the effects of hard inquiries may last from six months to a year.
This inquiry is will be on your credit report for 2 years. Consider researching
your likelihood of approval to make sure that you are a good candidate before
you apply for new credit cards. You do not like to risk reducing your score for
denied application. You must also refrain from applying for some credit cards within
a short period of time or before you take out a huge loan like mortgage.
