There is a lot you can achieve with an excellent credit score and getting this is a continuous process. Lenders, businesses, government, and private institutions all pay attention to your credit score to determine your access to loans, products, and some services. Even though many of us are putting in efforts to improve our credit score, we are not where we want to be yet.
There are also others with a bad credit score who are looking for ways to improve the score. If this is you, then you should know you are not alone. At Velocifin, we have helped many just like you to improve their credit scores from a bad one to an excellent one. In this article, we shall be examining some of the helpful means to improve your credit score and increase your access to opportunities.
The most important step to take to improve your credit score is to make quick payments of your outstanding bills. As we go on with our day to day activities, we are forced to pay some bills. You should pay up these bills as they come and avoid accumulating them.
Even though there is a plan to pay the accumulated bills at the end of the week or month, you should avoid accumulating them. Accumulating your bills over a long period will affect your credit ratings and result in a poor credit score. Swift payment of bills will improve your credit score and by extension your credit report.
When you make bills or utility payments, make sure they are credited immediately. When you applying for a loan or service, the lender looks into your credit report for two things. The first thing is how well you can pay back loans, and the second is how fast you can pay them. This is why you need to have payments made credited into your account t immediately as it not only shows your ability to pay but your ability to pay immediately.
As against popular beliefs, not all debts are bad. The type of debt you collect and the purpose for which the debt is collected are some of the factors that determine whether it is good or bad debt. For example, debts that are collected to improve an already growing business is good debt as you can repay such debt quickly.
Regardless of the type of debt, you are getting and the purpose for which you are getting the debt, take steps to pay your debts within the specified time. Debts paid within the specified time have a lot of positive effects on your credit score. When debts are not paid on time, the interest on them accumulates and this results in a poor credit score for you.
One mistake many individuals make is applying for multiple credit accounts. There is no point applying for a new credit account if you do not need one. Multiple credit accounts affect your credibility as a person and make lenders worried about your ability to pay back a loan.
It is not possible to have a separate credit report for every credit account you open. You will have a credit report that reflects all your account and every credit account you open will reflect on your credit. Keeping to credit accounts that have specific purposes attached to them can improve your credit score.
To improve your credit score, you need to keep unused credit cards open. The challenge many people face with keeping unused credit cards open is the annual fees that it accrues. If there is an unused credit card that is costing you high annual fees, then there is no point keeping such. However, it is a smart credit score strategy to keep unused credit cards open as it decreases your credit utilization ratio. Closing several accounts can lower your credit score and make your credit report suspicious.
Not only should you take steps to pay off your debt as fast as you can, but you should also limit your application for new credit. Make sure that your income is not greater than the debt you accrue by reducing new credit. If you have to take a new credit, make sure you do so when you need it. Carefully analyze situations that present itself to you to determine whether or not you need a new credit for such. The more new credit you apply, the more inquiry will be made into your credit report.
Always pay attention to your credit report after every analysis of it. Pay attention to the details and make sure they are as authentic as they appear. Where there is any irregularity with your credit report, make sure to report it immediately to the relevant authorities. Make sure to follow up on the report till the relevant correction is made. Errors on your credit report can affect your credit ratings and misrepresent you to a lender.
To secure your financial future, you have to pay rapt attention to your credit score. Your credit score can give you access to more opportunities or limit you. Regardless of where you are now with your credit score, there is always room for improvement. By paying your bills quickly, offsetting your debt quickly, and limiting your applications for new credit.
You should also get immediate credit for payments made, report any miscalculation on your credit report, and keep unused cards. There are several other strategies that you can use to improve your credit score, but these are the most important of them. These strategies are to be analyzed against themselves and measured over a while to determine their effectiveness
Quick Payments of Bill
Get Immediate Credit for Payments Paid
Pay Off Your Debts As Fast As You Can
Apply For New Credit Accounts Only When Needed
Keep Unused Credit Cards Open
Limit Your Applications for New Credit
Report Any Miscalculation on Your Credit Report