Ways to increase your credit score
If you think that making payments in full every month is the only way in which you can increase your credit score, then you are wrong. There are many ways in which one can increase their credit score. Some of the most interesting ways are noted below.
Fill the gap
If you have a credit card and your friend even has one, it is possible that your credit score as compared to your friend’s credit score might be less. Here, we are considering that both of you are making regular payments. Then why is there a difference between the two credit scores?
Well, the credit score is calculated on the basis of the purpose you are making a payment for!
Depending on the purpose, the rate at which the credit score may increase or decrease is determined.
Your credit report will help you notice gaps that can be easily plugged. For example, if you wish to buy a car, buy it on a loan even if you have enough money to make the full payment of the car. Do it for the sake of increasing your credit score. Remember, your sole purpose here is to improve your credit score. In return, you might have to pay a nominal amount as interest; pay it because it will help you increase your credit score.
Get a variety
Well, having more than one credit card can even help. If you have enough money and some time to spend, get more than one credit card and plan your spending. This will help you increase your credit score.
There are people who do not wish to opt for an additional credit card because they fear spending more while shopping. This is true because, with a credit card in your wallet, you will be tempted to swipe it regularly and spend more than required. However, it can be prevented.
For example, if you are planning to buy a sports gear for your child. Don’t move out of your house. Visit stores like Fanatics.com and you will get a variety offered at once. Scroll through the options and you will be able to get an option you are hunting for. However, if it is expensive, wait for the offers and you might get the best deals on them. With deals and offers, you should be in a position to spend enough on the product and then swipe your credit card. Fanatics.com even has a sale section that can help you know about the current deals and offers available at the store.
Here, we are trying to help you get the best offers and deals so that you can save money while shopping at Fanatics.com and thus swipe for a lower amount. So, look for coupons for Fanatics.com too.
Have active accounts
Well, if you think that you can manage well with one account, you should make sure that you keep it active and let the flow be continuous.
Remember, your active accounts can help you increase your credit score.
What if you have more than one account? Well, you should keep them all open and make sure that some transaction or the other is taking place in those accounts.
Keeping accounts open will help.
If you are planning to close an account, make sure that it is not one of the four oldest accounts on your credit report. Here, it is even important to note that you may close an account that will not be used in the next year.
New credit request
Well, as and when your credit score increases, you will get new credit requests. With better loans, you might be tempted to convert your old loan into a new one so that you don’t have to pay a high interest amount on the previous loan. However, if you have more than one loan previously, do not think of converting them all at once. This can affect your credit score negatively.
So, go slow and make sure that your credit score is not affected negatively.
Stability is important
Stability in case of payments and transactions is important.
With payments, you know that timely payments can help you ensure that your credit score will not be on the lower side.
With transactions, we are trying to say that your transactions are being monitored and if you have a dry month in which no or just a couple of small transactions takes place, your credit score will not increase.
However, one should not think that stability will instantly boost your credit score on a regular basis. No, stability will not instantly boost your credit score. It will help in a small way, but the important thing to be noted here is that you will be able to maintain your credit score. Maintaining your credit score is equally important.
Stay updated with the ups and downs in your credit score
There are companies that can help you know your credit score.
However, before paying them to know your credit score, you should read the fine print of the company. This is important because there are companies that might enroll you for a fee-based program that may or may not be on your mind. You don’t want to enroll for something unnecessary and even pay for it. So, read the fine print properly and then go ahead with it to make a payment to the company to know your credit score.
Increasing one’s credit score is not difficult. However, one has to work smart to ensure that their credit score is not declining. At the same time, these tips should help one to increase their credit score gradually over a period of time.
Remember, your credit score is dependent on your activities and only you can increase or decrease it. So, if there is a firm that insists on increasing your credit score through some trick, stay away from it. Even if you are tempted, read their terms and conditions first, know more about the company and the practices followed by them before accepting their offer.
Sivua muokattu viimeksi 24.09.2016 14.22.