9 Fixes for your Credit Score
Posted on | February 21, 2012 | No Comments
Most people are suffering from credit problems. Some are looking for ways to repair damage of credit issues. A lot of people are already suffering from severe credit problems making it hard for them to obtain loans and credit cards. Some people have good credit standing but still wants to improve their credit score mainly because they want less interest and better insurance coverage.
It is important to know your current credit status for you to be able to improve your credit score by updating yourself of your credit scores annually. Credit scores above 760 are considered best rate while anywhere below 760 may need some improvements.
- If you don’t have a credit card, get one. Having and using a credit card can actually improve your score. If you are not qualified for a regular card, consider the secured card wherein bank will issue you a credit line equal to your deposit.
- Apply for an installment loan. You score will greatly improve if you are responsible in paying your obligations to both your credit card and installment loan. If you don’t have installment loan yet, apply for a personal loan that you can pay easily.
- Pay your credit cards. Paying your installment loan can improve your credit score but not as much as paying your credit card. A big gap between amount of credit card and the credit limit is good, but it can be better if the balance is below 10% of the credit limit. Prioritize paying the credit card that is already near its credit limit.
- Use your credit cards lightly. Using your credit cards lightly will prevent you from getting a big balance to your statement. Your credit score usually depends on the total balance of your last statement so it is necessary to keep your balance at least 30% of the credit limit – 10% is better. Pay your card before the due date.
- Check your limits. Ensure that you update your records and check your limits every now and then because some institution don’t update records if not requested by the client.
- Dust-off an old credit card. Activate your old cards so you can get points from it.
- Get some goodwill. If you are a good payer, you may ask the lender to give you even a little goodwill in return like ignoring late payments or erase previous delinquencies.
- Dispute old negatives. Previous problems with regards to your credit should be cleared because it affects your credit score in a way.
- Blitz significant errors. Correct errors regarding your credit standing. These errors include late payments, credit limits, etc.
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