How To Increase Your Credit Score
WHAT IMPACTS YOUR CREDIT SCORE
1. YOUR PAYMENT HISTORY – 35%
Late payments lower your score, so pay your bills on time
2. HOW MUCH YOU OWE – 30%
Keep your outstanding balances under 30% of your credit limits. Pay down your credit accounts to increase your score.
3. LENGTH OF YOUR CREDIT HISTORY – 15%
A short history is not a bad thing if you show responsible credit management. Having a few credit accounts is better than having no credit at all.
4. NEW CREDIT ACCOUNTS – 10%
Lots of new credit account inquiries can lower your score. Mortgage and auto loan inquiries are an exception; these count as 1 inquiry within a 30 day period.
5. TYPES OF CREDIT YOU HAVE – 10%
A variety of credit types — Like an auto loan, credit cards, and other credit accounts — could boost your score.
3 THINGS YOU CAN DO TO MAKE YOUR SCORE GO UP RIGHT NOW
CHECK YOUR CREDIT REPORT
Credit score repair begins with your credit report. If you haven’t already, request a free copy of your credit report and check it for errors. Your credit report contains the data used to calculate your credit score and it may contain errors. In particular, check to make sure that there are no late payments incorrectly listed for any of your accounts and that the amounts owed for each of your open accounts is correct. If you find errors on any of your reports, dispute them with the credit bureau.Read more about Disputing Errors on Your Credit Report
SETUP PAYMENT REMINDERS
Making your credit payments on time is one of the biggest contributing factors to your credit scores. Some banks offer payment reminders through their online banking portals that can send you an email or text message reminding you when a payment is due. You could also consider enrolling in automatic payments through your credit card and loan providers to have payments automatically debited from your bank account, but this only makes the minimum payment on your credit cards and does not help instill a sense of money management.
REDUCE THE AMOUNT OF DEBT YOU OWE
This is easier said than done, but reducing the amount that you owe is going to be a far more satisfying achievement than improving your credit score. The first thing you need to do is stop using your credit cards. Use your credit report to make a list of all of your accounts and then go online or check recent statements to determine how much you owe on each account and what interest rate they are charging you. Come up with a payment plan that puts most of your available budget for debt payments towards the highest interest cards first, while maintaining minimum payments on your other accounts.
Content Contributed By: https://www.themadronagroup.com/makes-credit-score-go/
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