Many people do not realize how important their credit score is, but in reality, your credit score can have an impact on your job, your housing, and your ability to get credit and loans. Having a good credit score is extremely important; but, many people are dealing with problems that have caused their scores to drop, and it is not always easy to bring those scores back up.
How you can boost your credit score? Well, there are a variety of easy ways that you can use to get your credit score looking better than ever.
Tip #1 – Start By Checking Your Credit Report for Errors
Believe it or not, many people actually have errors on their credit report, which can lower your score when the problem is not even your fault. It is important that you check your report from time to time to be sure that it is accurate. Some people find that there are debts showing on their report that have been paid off, some late payment marks that are incorrect, and in some cases you may even be the victim of identity theft and find that there are accounts on the report that are not even yours. In this case you need to report it to the reporting agency so you can get your score back on track.
Tip #2 – Pay Bills on Time
Perhaps you have had a few times in the past that you have made some late payments. If so, this can lower your credit score. If you want to boost your credit score back up again, you need to be sure that you pay all of your bills on time. The more consistently you do this, the better your credit score will begin to look. Sure, paying late in the past may have lowered your score a bit, but just by making sure that you pay on time now, you can start raising that score back up again.
Tip #3 – Keep Paid Off Accounts Open
Unfortunately there are many people think that they should close accounts when they pay them off; however, this can actually hurt your credit score instead of helping it. Once you pay off those accounts, it is best to leave them open. If you just shut them down, then it appears as thought you have a higher amount of debt compared to the credit available. Just keeping a couple paid off credit card accounts open can make your credit score a bit higher for you. Do make sure that you are using ones where you aren’t paying an annual fee to keep it open and YES you can eliminate temptation and cut up the card and still keep the account open.
Tip #4 – Avoid Inquiries
Many people don’t realize that simple inquiries on their credit report can actually be hurting their credit score. Unless you really have to, don’t allow inquiries on your report. If you keep inquiries to a minimum, you’ll be able to raise your score; however, if there are a variety of inquiries on your report, then your score will continue to drop.
Tip #5 – No Tricks
Now that you know a bit about how credit scores work, don’t try to game the system by doing things like opening new credit card accounts just to improve your percentage of unused credit. Better to keep your credit card balances below 75% of available credit. Of course less is best!
These are certainly just the basic techniques and there are many more including piggybacking your credit on someone else’s good credit by open joint accounts. You’ll need to consult a financial adviser for these type of practices.
In today’s world, your improving your credit score is extremely important, so it is imperative that you work to keep it up. Use these simple tips to boost your credit score, and you’ll be able to achieve a better credit score that can help improve your financial life.