JULY 19, 2013
It never hurts to stay informed on all the ways to increase your credit score. There are plenty of steps to take in order to bring your credit score up to a reasonable level. Here are a few things to consider when looking to increase your credit score:
- If you’ve built some sort of credit in your life, you are entitled to one free credit report per year. Take advantage of this. Some may be unfamiliar with their credit score and because of this, fail to qualify for student loans, house loans, car loans, etc. Your bank may be able to provide you a credit report as well, but most times for a fee. The fee shouldn’t be that expensive and price shouldn’t be an issue when monitoring your credit.
- One of the most important things you can do is pay your bills on time. To increase your credit rating faster, pay more than simply the minimum payment before the due date. The more that is paid off sooner, the sooner you’ll be out of debt. Easy enough, right?
- Understand the factors that go into your credit score
- Do you pay your bills on time?
- What is your outstanding debt?
- How long is your credit history?
- A short history may affect your credit negatively, however that may be offset with timely payments and a low credit balance.
- Have you applied for a new credit recently?
- The more credit accounts for which you’ve recently applied, the worse it may reflect on your score. However, requesting a credit report does not count as an application for credit.
- How many and what types of credit accounts do you have?
- Check out the FTC’s “Building a Better Credit Report”for information on how to correct errors in your credit report, and how to deal with debt.
- Be weary of credit-repair scams. Visit the FTC’s “Credit Repair: How to Help Yourself”article and read up on how to improve your credit worthiness by taking simple personal steps, and also what legitimate credit repair services are out there.