Improving Your Credit Score: The Tips You Need
Posted by darrellbrewster on April 24th, 2020
Your credit score is a number that is only three-digits long, but this number can play a huge role in your financial life. People with high credit scores qualify for loans and credit cards easily compared to people with low credit scores. So if your credit score is low and you are wondering how to fix your credit score, then you have come to the right place. This article will give you all the tips those you need to improve your credit score fast. So, let’s get started!
Keep Your Credit Utilization Ratio Below 30%
If you have taken aback by reading ‘Credit Utilization Ratio’ in the subhead because you have no idea what it means, then there is no need to fear. Your credit utilization ratio is the result that you get when you add the balances of all your credit cards and divide that amount by the combined total credit limit of all your credit cards.
When you apply for a loan or a new credit card, banks will look into your credit utilization ratio and issue your loan or credit card based on their findings. Generally, people whose credit utilization ratio is below 30% fare better at getting their desired loans and credit cards. If your credit utilization ratio is more than 30%, you should start paying off your debts sooner so that the ratio comes down.
Make Friends with Your Unused Credit Cards
If you are one of those people who own a plethora of credit cards but don’t bother to use all of them, then you are in luck! A great way to keep your credit utilization ratio down is not to close unused credit cards.
Many people think of closing unused credit cards as the most sensible thing to do, but on the contrary, closing unused credit cards may do more harm than good by drastically increasing the credit utilization ratio.
Clear Pending Payments on Time
If you have numerous pending payments, then it’s best to clear them within the stipulated time. Even though, you may be able to clear certain bills late, this will contribute badly on your credit report. Too many late payments adding up on your credit report will lead to lenders refusing your requests for new credit cards and loans.
If you have a history of late payments, then don’t worry, as the impact of your payment history on your credit score will gradually fade. However, you should start paying all your present pending bills without any further delays.
Steer Clear of Bad Credit Repair Services
In a desperate attempt to quickly improve your credit scores, you may have searched for credit repair solutions on Google. The results would typically feature a mix of trustworthy services and services whose claims seem too good to be true.
Steer clear of the latter types of services, as they are mostly scams those want nothing apart from your money. Typically, these services would ask you to pay them for improving your credit scores before they even lift a finger.
Also See: Credit Cards, Utilization Ratio, Credit Utilization, Credit Score, Ratio, Credit, Cards
If you are really worried about your credit score, then you should first get in touch with a reputed credit counselor. An experienced and qualified credit counselor would be able to guide you towards an honest and genuine credit score fixers.
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