Over 50% of Americans have been turned down for a loan, line of credit, or another credit product due to poor credit. Unfortunately, this is an issue that plagues millions of people. While this is true, there are ways you can improve your credit rating. Learning how to improve credit can take time, but it is worth it in the long run. Keep reading for some tips, tricks, and strategies to help improve your credit scores.
Table of Contents
1. Review Your Credit Report
Hiring a credit repair company (more information here) is a great way to boost your credit. However, before doing this, it’s good to know where you stand.
You can receive your credit report, free of charge, once per year. Pulling your credit report will not have a negative impact on your credit rating.
Take time to review the information carefully. If there are errors, dispute them. This is the fastest way to improve your credit.
2. Get Your Bills Organized
Up to 90% of lenders will use your FICO credit score to determine if you are creditworthy. Things they look at include payment history, new credit inquiries, credit usage, credit mix, and the age of your credit accounts.
Your payment history has the most impact on your credit rating. Because of this, you should avoid late payments as much as you can.
3. Catch Up on Accounts That Are Past Due
If you have gotten behind on your bills, try to get them up to date. Even though a late payment can be reflected on your credit report for up to seven years, ensuring all your accounts are current is good for your credit score.
Also, it will help ensure no more late payments are added to your credit history and prevent even more late fees.
4. Create Payment Reminders
Write down when your payments are due. You can use a planner, calendar, or set up reminders on your phone.
It is essential that you pay your bills on time, which is going to increase your score in just a few months.
5. Check Your Credit Utilization
You should try to use less than 30% of your total available credit. In fact, after your payment history, this is the second most important element in your FICO credit score calculation.
By reducing how much you have on credit, you can improve your credit score. It makes sense if you think about it.
Improve Credit Ratings with These Tips
If you are searching for effective ways to improve credit ratings, the tips here should help you get started. Each of these is a proven strategy that will help you achieve your financial goals.
Keep in mind that there are professional credit repair services that can help you with this, too.
Are you searching for more information about things like finances, health, or news? If so, be sure to read some of the other blogs we have posted on our site.