5 Easy Ways to Improve Your Credit Score
1. Get Your Credit Report from any of the 3 Bureaus for Free
Getting a credit score intimidates a lot of people. It can seem like an
uphill battle. However, having good credit will make your life easier.
Once a year you can get a free credit check from
www.annualcreditreport.com/index.action and utilize credit bureaus
such as Experian, Equifax or TransUnion.
2. Remove the Errors from Your Credit Report
The Federal Trade Commission says that 5% of consumers pay more for
insurance and financial services due to errors on their credit reports. And
around 25% of reports contain errors that affect them negatively.
Note anything you see on your report that seems incorrect. This may
include: payments marked late when you paid them on time, negative
marks that should have expired etc. Next file a claim or dispute and the
credit bureau must respond within 30 days.
3. Increase Your Credit Limit
Increasing your limit while keeping your balance the same can help you.
Your credit utilization ratio plays a significant role in influencing your
credit score. This ratio comes down to the total credit you have and how
much you actually use. Bruce McClary, spokesman for the National
Foundation for Credit Counseling, advocates that your ratio stay under
30%.
4. Use Your Credit Cards
A 0% credit utilization ratio can actually harm your score. Credit Karma
conducted a study which found that people who had a 0% ratio had a
lower credit score than those that use 1%-20% of their total credit. Use
your credit card wisely and as a tool to build credit.
5. Clear Past Balances and Make Payments on Time
Your payment history affects your score the most. Call your creditor to
arrange a payment plan for your past due accounts. Also ask if that will
rescind the delinquencies on your reports. If not don’t worry just focus
on clearing your past balances. Work out an early notification reminder
of due dates with your card issuer.
Don’t put yourself in a position where you spend more than you can
afford to pay back. Get with a professional that knows the ins and outs.
Contact us today as we will help you and teach you the best ways to
increase and maintain your discipline, when it comes to improving your
credit!
Disclaimer: No statement on this site is a commitment to make a loan. Loans are subject to borrower qualifications, including income, property evaluation, sufficient equity in the home to meet Loan-to-Value requirements, and final credit approval. Approvals are subject to underwriting guidelines, interest rates, and program guidelines and are subject to change without notice based on applicant's eligibility and market conditions. Refinancing an existing loan may result in total finance charges being higher over the life of a loan. Reduction in payments may reflect a longer loan term. Terms of any loan may be subject to payment of points and fees by the applicant Equal Opportunity Lender. NMLS#57916 http://www.nmlsconsumeraccess.org/
