Better credit means you have more financial options and this will allow you all sorts of benefits in life. Here are some tips on improving your lines of finance.
Check Your Credit Report And Review It Carefully – You are entitled to receive one free credit report per year from each of the three major reporting agencies and asking for one does not impact your credit score. Make sure you closely review your credit report and if you find any errors, dispute them. That is the closest thing that you can get to a fast fix of your credit. When you notify the credit reporting agency of outdated or wrong information that can help to improve your credit score just as soon as any erroneous information has been removed from your credit report.
Get Payment Reminders Set Up – Write down the payment dates for all of your bills on a calendar or planner and set up online reminders. Paying all of your bills on time on a consistent basis can increase your score within a couple of months.
Pay More Than One Time Per Billing Cycle – If you are able to afford it, make payments on your bills twice a month instead of once. That will reduce your credit utilization and improve your credit score also.
Contact Your Creditors – This should be done immediately to get a payment plan set up if you are unable to afford to pay all of your monthly bills and have missed some of your payment deadlines. Addressing the problem quickly can help to reduce the negative effects of high outstanding balances and late payments.
Only Apply Sparingly For New Credit – Although it will increase your overall credit limit, it can hurt your credit score when you open or apply for several new accounts within a short period of time.
Don’t Close Your Unused Credit Card Accounts – How old your credit history is does matter, and it is better to have a longer credit history. Close newer ones if you need to close some of your credit accounts.
Be Careful About Paying Old Debts Off – If a creditor charges off a debt, it means they are not expecting additional payments. If you make payments on a charged off account, it will reduce your credit score and reactivates the debt according to payday credit provider OnlinecreditUSA.com. That frequently occurs when a collection agency is involved in the process.
First Pay Down Your “Maxed Out” Card – If you have multiple credit cards that you use and the amount that you owe on one or more of them are close to their credit limits, pay them off first so that your credit utilization rate is reduced.
Diversify Your Credit Accounts – Your credit mix – credit cards, student loans, auto loans, mortgage – accounts for 10% of your total credit score. It helps your credit score when you add another type of credit to your current mix, as long as you make your payments on time.
Shopping For A Quick Loan – If your credit is poor and you are unable to find a way to improve your credit score, you could consider getting a quick loan. Typically, those are loans for a small amount of money – $250 to $1,000. The repayment history will get reported to the major credit agencies and make a positive impact on your report. However, this is a final resort.
See If You Are Able To Quality To Get A 0% Interest Card – There are several companies that offer credit cards that have a 0% interest on the balance. However, there are some caveats. To transfer the balance may involve a fee and the zero-percent offer only is good for an introductory time period, which is typically 12 to 18 months. To qualify for one usually requires a good credit score.
Consider Getting a Consolidation Plan – If you enroll yourself in a debt consolidation program your credit score might temporarily drop, but as long as you make your payments on time, your score will improve quickly and help you eliminate the debt that got you into trouble to begin with.