A lot of people wanting to know how to improve credit scores are unaware of how the process works. This page will provide you with a few tips for credit score improvement that is painless and that can be done by the average person. People often want fast results when it comes to repairing credit but fail to understand that there are no quick fixes. Just as it took time for you to wreck your credit, it will take time to see your scores start to rise. Rest assured, if you follow the advice on this page, you will begin to feel the excitement that comes with seeing your scores rise.
Before we move on to showing you how to improve your credit score, you should exercise caution when it comes to companies that promise super-fast results. There are legitimate companies online that understand the legal process and follow the law when it comes to rebuilding one’s credit, but there are also companies which lack the experience needed to improve your credit in a responsible manner that causes your credit score to actually increase.
Below you will see my best advice for how to improve your credit rating to get it to a rating that is considered good in the industry. What is a good credit report score? If your FICO rating is below 620, you will find it rather difficult to qualify for loans and credit funding. This will often result in paying higher interest rates on credit cards and other financial products.
The tips below will provide you with the best ways to rebuild your score without using the fast methods which commonly yield little to no results. Improvement takes time and is a realistic process that all consumers can take to effectively manager their credit. Once you begin the process, you will start gaining momentum and your confidence with build through each phase. By all means, it you feel that you need assistance, never hesitate to reach out to a qualified professional. While some may feel they have the confidence, to take these steps, others may lack the time required to completely follow through.
Do a Credit Rating Check of Your Credit Score
Increasing your credit score to 620 or above begins with getting a copy of your free credit report so you can evaluate its history in entirety. This report is vital since it contains all of the information that credit agencies, loan companies and bill collectors use to arrange your credit scores. This report can often contain certain types of reporting errors which can cause your scores to decrease and they need to be corrected. Things you may want to look for are reporting errors for late payments and that the listed accounts reflect accurate account balances. Any errors should be officially disputed by filing the correct paperwork with the appropriate credit bureaus.
How To Improve Credit Scores By Paying Down Your Debts
This may seem like an impossible task right now, but the reality is that there are measures which you can take to start seeing your debts reduced. There really is no need in improving your credit score if you are going to continue to build up debt. The best place to start is with low and high interest credit cards. Believe it or not, credit cards account for much of the debt that most families face but can often be the easiest to tackle. It is wise to check your existing account balances against your free credit report to see if the balances are correct. Once done compare your monthly spending budget against the credit cards that have the highest interests rates and begin to pay those off first while maintaining the payments on your lower interests credit cards too.
How to Improve Your Credit Rating Using Payment Alerts
It is important to make your monthly payments on time if you are going to improve your credit score. Many banks and financial institutions offer payment reminder services free of charge to customers as a way of helping them stay up on payments. These alerts can be sent to your email address, or as a text message to your cell phone reminding you of an upcoming payment. Another great way to make sure your bills are paid promptly is to set up an automatic bill payment system. This can be done with outstanding credit cards, utilities and banks loans as well. When you enroll in such a program, the amounts due are automatically debited from your checking or savings account each month so as long as the available balance covers the debit.
Improve Credit by Getting a Secured Credit Card
People with low credit scores or very little credit history can actually benefit from a secured credit card. This is a fantastic way to help you raise your scores since the purchases you make on the card are actually reported to the credit agencies. Initially, you will have to make an upfront collateral payment to activate the card which could be several hundred dollars. However, it’s only collateral money. Once you have faithfully made payments on the card for 6 months, some banks will actually grant you a line of credit. A good secured card to get you going is the 0% interest Public Savings Bank Visa card which comes with no annual fees. Purchase made with the Public Savings Bank Visa are reported and logged in your credit files.
Keep Unused Credit Card Accounts Open
Closing an unused credit card account can actually hurt your credit worthiness and reduce your score. An optional strategy would be to periodically make small purchases on these cards to keep showing that you have active credit. Over time, this history does wonders to increase your credit report score.
As you can see an improved credit rating is possible by exercising a little diligence and following the advice previously mentioned. If you have any trouble with any of these talk to a credit counselor in your area or look online for additional resources.