credit report

Effective Ways of Improving Your Credit Score

Building up or destroying your credit score is a process that can take a few months. Credit mishaps are some of the issues that can negatively affect your score. It can also result from problems that are difficult to control such as bankruptcy, medical bills, and divorce. Having a low score can make your life more expensive. You will be required to pay high interests rates on loans. You should always make an effort of maintaining your credit score.

This score is used in showing on-time payments, discipline, responsibility, and credit history. A low credit score can be improved naturally over time. Individuals who might have upcoming leasing and financing needs in future should make an effort of raising their scores beforehand. This can significantly help them in saving money and boosting their borrowing power. The following are the quick tips that can help you in boosting your credit score.

Disputing The Negative Marks

paying bills

Sometimes people are unable to pay their bills on time due to other commitments or emergency needs. Between juggling your family and business, payment of bills can sometimes slip your mind. There are three credit reporting bureau; Equifax, TransUnion, and Experian. Even if your credit report can vary a little with the three firms, you should always contact them whenever you have a dispute. You should make your disputes in writing and make several copies of everything. Spending time and being thorough can help you in boosting your scores.

Raising Your Credit Limits

Calling the existing credit card companies can help you in raising your credit limits. Individuals who have not fully utilized their credit can easily raise their limits. Even a 10 percent increase can improve your overall credit report.

Opening New Secured Credit Cards

credit cards

Individuals having a score of more than 800 should have about seven open credit cards. This is the number that you should aim for. Ideally, you should get a secured and approved credit card. This is the best way of building your credit. Individuals who have bad credit scores can also get approval for secured credit cards. Lenders can give you a credit line after putting down your deposit.

Becoming an Authorised User

This might be a bit tough for you, but it is another effective method. You can use other people who have a better rating to achieve a good rating. You can be added to their existing accounts. Individuals who have been added to other people accounts are provided with cards which are linked to those accounts.