How to improve your credit score? : Credit Score, it’s not just a three-digit number but an entire calculation based upon which your lender will decide whether you are liable for the credit or not! It’s definitely an important factor to evaluate your financial health in terms of credit or loans. The higher the credit score, the more you become qualified for quick and hassle-free loans and credits. Moreover, if your credit score is higher, then chances are you will be offered low-interest rates on your loans or credits from the financial institutions or banks.
What’s your credit score and credit history? Is it not up to the mark? Well, you are not alone in this, especially during this pandemic situation. Everyone is trying to pay their bills and EMIs on time, but due to this crisis-like situation, it seems a bit harder! Obviously, maintaining your credit score is a hard nut to crack! However, not impossible, right? Improving your credit score takes time, but if you start addressing this issue and work upon it, then you can surely make the credit score meter go up!
Do you want to improve your credit score as well? Then, don’t miss out on the below listed some of the vital points to improve your credit score and thereby, become eligible to get better loan opportunities in the future. In addition, you can take help from experts like Credit Triangle for credit score improvement and credit counselling services!
Here is the list of steps that you can follow to improve your credit score this time!
1. Review your Reports
First of all, you have to understand your own credit history to analyze where you went wrong, and to check what works best in your favor and what is not! Analyzing your credit reports will help you to improve your credit score. Maybe you must have delayed your EMI payments, low balance on a credit card, old credit amounts, missed bills or payments, and so forth. Every factor contributes to lowering down your credit score and impact your credit reports in every way possible. So, the first step that you can take towards improving your credit score is through evaluating your credit reports. To get FREE credit reports with a range of improvement plans, get in touch with the experienced professionals of Credit Triangle to help you with the same!
2. Pay all your BILLS on Time
Whenever you apply for the loan or credit, lenders always check your credit reports and especially, how reliably you have paid your EMIs and bills. Usually, the payment performance every month is what matters and decide your future loan applications!
To improve your credit score, the next step you can take is to start paying your bills on time without even a single miss or delay. On the agreed month or agreed date, you have to make sure that you pay to positively impact your credit score. Not just the credit card bills, but any other loan that you have taken, must be repaid on the agreed date. Therefore, mark the date in your calendar and don’t forget from the next time.
3. 30% Credit Utilization Only
Do you know what is the credit utilization ratio? Basically, it refers to the credit limit of your credit card, which is calculated by adding all your credit balances! After the payment history, credit utilization is one of the essential factors in credit score calculations.
It’s vital to maintain the credit limit of your credit card to keep your credit score high. In case, if your credit limit exceeds, then it will surely impact your credit score! And, to improve your credit score, you have to ensure that you always pay your credit card balances to keep the ration in control. You can either ask for your credit limit increase as per your usage and requirements, or you maintain the credit utilization ratio down to 30% to improve your credit score!
4. Limit your Credit Requests
The next crucial point is limiting your credit requests, and yes, they do impact your credit score. First of all, there are two types of credit requests, i.e. Hard and Soft!
A soft inquiry is basically checking your own credit or checks done by the financial institutions and they don’t impact your credit score in any way! Then comes the hard inquiries, which adversely affect your credit score. It includes applying for a new credit card, mortgage loan, auto loan, or some other new type of credit card. Occasional ones don’t affect that much but inquiries done frequently can affect your credit score negatively.
If you are looking for ways to improve your credit score, then it is advised to not to apply for any type of new credit card, at least for a while!
5. Deal with Delinquencies
Credit age matters a lot to the lenders because the older your credit age, higher chances that you might appear in the lists of lenders. If you have an old credit account that you might not be using then don’t close them at all. The credit history will remain of those accounts while you have a balance on other card would lower your available credit, and increase the credit utilization ratio. This way you will lower down your credit score.
Moreover, if you have some delinquencies, payments to be collected, then you must resolve such issues as it can impact your credit score. Multiple accounts and late payments, if that’s in continuity, then you have to resolve this use as soon as possible to improve your credit score. Obviously, the credit history can’t be removed, but you can definitely work upon the upcoming payments to pay them on time and improve your credit score.
6. Credit Monitoring to Track Credit Score
Credit monitoring is of utmost importance. You have to track and monitor your credit score over a period of time and understand how it changes. Credit monitoring is not only important for credit score check but also to keep you updated about all your credit enquiries along with prevention from theft and fraud. Hence, credit monitoring is extremely beneficial in several cases to keep the track as well as making it sure that it’s safe from any type of theft and fraud.
7. Inaccurate Information in Credit Reports
It is crucial to check your credit reports at all the major credit reporting bureaus in case of any type of inaccuracy. Do you even know that inaccurate information can lead to an adverse impact on your credit score? If you aren’t aware of it, then you must check your credit reports to check if there’s any inaccurate information or detail mentioned. Verify that the accounts listed on your credit reports are absolutely correct, and in case of any inaccuracy or dispute in the information, get in touch with the bureau experts. Getting it corrected is very important to maintain your credit reports and thereby, improving your credit score!
A good credit score can lead to many wonderful opportunities for you to get the best credit or loan as per your requirement along with various other benefits like low-interest rates, payment flexibility and what not. As per your credit history and current credit score, you can check whether you are eligible for the loan or not, or whether the lenders will consider your application or not! Considering how important credit score is, one thing that is for sure is to maintain your score and do good as possible. Just frequently check your credit score, track your progress, take critical steps to ensure that your credit score is improved. Do everything whatever it takes to improve your credit score and follow the above-listed best practices.
Lastly, if you are seeking for professional help, then Credit Triangle is here to assist you with the best solution that fits within your back pocket! A highly experienced and professional team of Credit Triangle provides the best guidance to those seeking financial advisor’s help.