If you want to raise credit score, you have to be prepared to do several things just to improve your rating.
A bad credit score may not be the end of the world, but if you are trying to get a loan, this makes it a lot harder than you think.
Most credit companies are looking for a credit score of at least seven hundred and twenty.
Any score lower than that may lead to rejection of your loan application.
For a better credit score, follow our helpful guide and see your way to better financial opportunities.
1.
Get to know your credit score.
If you don't know your exact credit score and credit rating, then you will never know how to improve it.
As a part of the law, every credit card holder is provided with a free copy of the report of their accounts every year, by request.
This means that it is certainly up to you to check and obtain a copy of your credit reports every year.
Getting a free report is actually easy.
You can do it online, by phone, or by paper application from the FTC.
Choose whichever method you like.
Just make sure to do it yearly.
2.
Check if there are any errors.
Once you receive your credit score, you may want to check out the whole report.
This is to ensure that everything entered into your account is correct and valid.
If you find any errors and mistakes, make sure to report it to the credit bureau as soon as possible.
This way, you can make sure that they are going to make an investigation right away and do everything in their power to clear up the mistakes on your record.
You can also explain to your creditor why you weren't able to pay your bills on time.
By submitting a letter of explanation, this will give them a clear understanding of why you weren't able to pay it in the first place.
3.
Always pay your debts on time.
The only thing you can have control over is the money you owe and how you can use it to pay your debts.
When your credit limit is far ahead from the credit you have used up, creditors see this as a good thing.
If the opposite happens, it can be a very difficult situation.
Don't ever think that it is too late to start paying your bills on time.
4.
Think it over before closing accounts.
Closing accounts with bad credit scores may harm your finances.
It is better if you leave them open and continue paying them on time.
5.
Don't allow your cards to sit on a shelf.
If you think that not using your card at all will help your credit history, think again.
It will actually do more harm than good.
Creditors usually prefer cards that are being actively used rather than those which are never used.
Even if you don't use your credit cards, they can still have an effect on your total credit limit.
So what are you waiting for? Follow these tips to raise your credit score today.