Primarily, you want to keep your credit score high so that lenders can offer low rates when you get a loan from them.
Nevertheless, what makes a good credit score? Well, lenders usually rank your score from 350 to 800. Just know that your score ranges from within those two numbers. However, most lenders will only qualify you for a loan if you have a 700 point score, or higher.
With that score, you are sure that you will receive lower interest rates since they will see you as less of a risk.
If you have been looking for ways to better your credit score, what are some of the things that you can to improve the score significantly? Here are some practical ways to do that, exactly.
- Do not be late in paying your bills
The best way to make institutions trust you is to start paying your bills on time. Stay true to your loan, and next time you want another one, the lenders will not hesitate.
Set a reminder on the due date, which should be monthly of course. You can also ask your lender to send you an automatic email the day before the payment date. Most of the online banks will not hesitate to do that; remember that they need the money.
You may require the reminders especially if you have a tight schedule.
- Ask for help from a credit repairer
Note that the credit repair companies work. Those that have bad credit, and are finding it difficult to repair the score all by themselves, then settle for these companies.
As much as they work, you have to be careful to avoid falling into the hands of a scammer. Many people, especially the desperate ones, fall into the hands of these companies; hence, they lose much of their money, which is something they could avoid at the first place.
If you are looking for the best firm to go to, here is a list of Best Credit Repair Companies of 2018 – Credit Repair Reviews.
- Trash credit cards that you no longer need
Once you acquire a credit card, it is often possible to misuse it in purchasing unnecessary things. However, a credit card should provide convenience when you need to buy something quick.
If you have too many credit cards it means that you are just adding up loan balances for yourself. Close any card that you do not need, and stick to the old ones. Use your credit report to fix problems with them, and you are sure that your scores will rise.
Note that you have to keep the older ones. That is because you will require your credit history when calculating the score.
- Fix credit card spending habits
Note that we are not telling you to stop using your card, no. You have to continue using your credit card for improving your credit utilization ratio.
If you are always an impulse buyer, then avoid buying those unnecessary items with your credit card. Use it to run usual errands since your credit card gives you the freedom to use money, which you have to keep at bay; otherwise, your loans will pile up, and it will be difficult to pay them.
If you are in a situation that will force you to skip your monthly payments, be sure to alert the bank. Let them know of that issue, or that you lost your job; therefore, they should wait upon you to look for other alternatives. Trust me; they will do precisely that.
Get a credit report and note where the bank notes that you made late payments. Some can be mistakes by the bank, which is something that you can negotiate with them.