Tips to Improve Your Credit Score
Nowadays having a good score effects more than just loan approval.
When you go to rent an apartment your landlord will obtain a credit report on you and if you have a low credit score he will charge you more per month.
A future employer will also review your credit report.
This may be a deciding factor if your hired because you could be competing against someone with the same qualifications with the only difference is your low credit score.
Let's take a look at how to improve your credit score.
First you have to know what your credit score is which can be obtained from any of the credit bureaus.
Second obtain your credit report and look for errors.
Errors can be a misspelled name which is very common.
If you are a Jr.
or Sr.
you definitely want to review since your son's or dad's credit could be on your credit report.
This is very common and happens to many people.
Third if you have been behind on bills make plans to get current.
Contact your lender to see if they have any plans which will help you get current.
Having a late will lower your credit score initially.
The good thing is once you get current it will not be such a drag to your score.
Fourth don't apply for any new cards if not needed.
Remember inquiries can lower your credit score.
Note: You can review your own credit report without any penalty.
Do not keep applying for credit cards if you are declined.
What you want to do is review the reason for being declined.
If it was due to poor pay history for instance.
The best action you can take is start paying your bill on time.
Believing some finance company or bank will approve you when most have declined your application will only lower your score.
Fifth thing do is pay down your credit cards since higher balances can hurt your FICO score.
As you are paying down your balances be sure to leave the same credit limit.
Why should leave your credit limit the same? One part of your credit score looks at amount of available credit.
For example if you owe $5,000 with an available limit of $6000 this can hurt your FICO score.
As you are paying down the balance to say $3000 with the same credit limit of $6000.
This will actually increase your credit score.
Sixth thing to do is look to consolidate all your credit card debt into an installment loan.
Sometimes an installment will have a higher rate than you are currently paying.
Then why should you do consider a consolidation loan? Well, credit card debt is viewed more negatively than the exact same balance with an installment loans.
When you go to rent an apartment your landlord will obtain a credit report on you and if you have a low credit score he will charge you more per month.
A future employer will also review your credit report.
This may be a deciding factor if your hired because you could be competing against someone with the same qualifications with the only difference is your low credit score.
Let's take a look at how to improve your credit score.
First you have to know what your credit score is which can be obtained from any of the credit bureaus.
Second obtain your credit report and look for errors.
Errors can be a misspelled name which is very common.
If you are a Jr.
or Sr.
you definitely want to review since your son's or dad's credit could be on your credit report.
This is very common and happens to many people.
Third if you have been behind on bills make plans to get current.
Contact your lender to see if they have any plans which will help you get current.
Having a late will lower your credit score initially.
The good thing is once you get current it will not be such a drag to your score.
Fourth don't apply for any new cards if not needed.
Remember inquiries can lower your credit score.
Note: You can review your own credit report without any penalty.
Do not keep applying for credit cards if you are declined.
What you want to do is review the reason for being declined.
If it was due to poor pay history for instance.
The best action you can take is start paying your bill on time.
Believing some finance company or bank will approve you when most have declined your application will only lower your score.
Fifth thing do is pay down your credit cards since higher balances can hurt your FICO score.
As you are paying down your balances be sure to leave the same credit limit.
Why should leave your credit limit the same? One part of your credit score looks at amount of available credit.
For example if you owe $5,000 with an available limit of $6000 this can hurt your FICO score.
As you are paying down the balance to say $3000 with the same credit limit of $6000.
This will actually increase your credit score.
Sixth thing to do is look to consolidate all your credit card debt into an installment loan.
Sometimes an installment will have a higher rate than you are currently paying.
Then why should you do consider a consolidation loan? Well, credit card debt is viewed more negatively than the exact same balance with an installment loans.
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