How To Boost Your Credit Score

By: Michael Sava

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Credit is the financial foundation of our life. It allows you to borrow money (credit cards) and save money (bank accounts) while opening access to other financial opportunities like loans, mortgages, lines of credit, or something as simple as a cellphone. You want your credit score to be high enough so that lenders are more likely to trust you with their money. But what’s a good credit score? That depends on what type of lender you need to appeal to. If you have a mortgage, it’s typically around 740-770. If you’re applying for a personal loan with the bank, then it’s typically between 700-740.

Improve Your CREDIT SCORE

The key in how to boost your credit score is knowing what type of lender you need to appeal to in order for them to trust you with their money without spending too much time researching your credit score themselves. Here are some ways that might help boost your credit score as well as some things that can hurt it as well.

CREDIT SCORES AND WHAT THEY MEAN.

Credit scores are the numbers that lenders use to determine if you have a good credit risk. For example, your credit score may be based on your FICO (Fair Isaac Corporation) Credit Score or another number. We asked the people from Credit Saint how to boost a credit score and they weren’t shy, they let us know in detail. Now, we are going to share it with you. If you want to know more about what makes up a credit score and how it works, keep reading!

THE 7 MOST IMPORTANT FACTORS THAT ARE USED WHEN CALCULATING YOUR CREDIT SCORE

If you are paying your bills on time
If you are keeping a low credit utilization ratio
If you are closing accounts and paying off debt quickly
If you are making new, minimum monthly payments
If you are paying your credit card bills on time
If you are taking out small loans in good faith (not for emergency purposes)
If you are not opening or closing any new cards

Let these factors serve as a foundation while trying to answer how to boost your credit score. These are key for anyone to start doing and maintaining while your score rises. The problem with credit score, no matter what anyone promises you, will take time. So, if you got the time, work on your credit later. If you need credit for a purchase, apartment credit check, phone, mortgage, background check for a job, then do not wait. This will hold you and in turn your family back.

Typical Credit Report Errors You Need To Know

THE 8 WAYS TO BOOST YOUR CREDIT SCORE

1. Pay your bills on time and keep them paid

The first step in improving your credit score is paying your bills on time. Not only will this improve the credit score, but it can make the process much less stressful and more enjoyable. You don’t want to be worrying about whether or not you’re going to get paid because you’re behind on your bills. This could lead to stress, which can negatively impact your credit score.

2. Pay off all credit card debt

When it comes to maintaining a high credit score, paying off all of your credit card debt is an important step. If you have zero debt or just one small debt, odds are that you won’t be able to pay it off in full before the interest begins charging again. So if that’s the case, pay it off as soon as possible to improve your credit score. This could also mean spending more money when you do have more money for things like groceries or rent. It’s best to pay every month anyway so that you’re still making payments on time without getting into any financial problems down the road.

However, I know that you may not be able to pay off all your credit card debit card off at the end of every month. In fact, you don’t have to do that. One major factor and best answer to “How to boost your credit score?” is to only charge 10% or less of your credit cards available limit. If you have a hundred dollars limit on your credit. You should not charge more than 10 dollars. It awful, but this is how to boost your credit score.

3. Don’t open new credit cards

Opening more credit cards can be a good way to improve your credit score, but it’s important to make sure you’re doing it for the right reasons. The most common reason people get a new credit card is to build their credit score or get rewards for their loyalty. This is not always the best thing to do, especially if you’re not sure about the company and or rewards program. It’s also important to know how much you can afford to pay on each of your cards before opening any new ones. Otherwise, it could lead to unnecessary debt and even more stress when you have to pay off those debts later on down the road with interest charges.

4. Pay off all other types of debt

The best way to improve your credit score is to pay off all of your other types of debt. If you have any other accounts besides a credit card, then it’s important to pay them off as well. Paying down any other types of debt will make sure that you’re not spending more money than what you have, which is one of the worst things that can happen to your credit report. This will also help you avoid any late payments or even collections accounts that can damage your credit score again.

5. Keep a low balance on your credit card

As I mentioned before. The last thing you want to do when improving your credit score is to use up all of the available credit in your account, especially if it’s not being used for the right things. You should keep a low balance on your credit card so that you can avoid the fees associated with carrying a high balance. Carrying a large amount of credit card debt can lead to problems with your credit score and it will also affect your overall financial situation. As I stated, this is how you boost your credit score!

6. Keep track of all of your credit activities

One of the best ways to improve your credit score is to make sure that you’re not doing anything that might negatively affect it. This means that you should always keep track of all of your credit activities, including when and where you use different types of cards and how much you spend on them each month. This will help you be aware of whether or not there are any problems with your finances and how they may affect your credit score.

7. Pay all of your bills on time

One of the best ways to improve your credit score is to make sure that you’re always paying all of your bills on time. This will help prevent any fees from being placed on your account and it will also keep you from having to pay interest charges on the money that you do owe. It’s important that you pay all of your bills on time so that you can be sure that there are no problems with them and how they may affect your credit score. This is how to boost your credit score.

Start A Credit Repair Business

8. Don’t apply for new credit cards too quickly

One of the best ways to improve your credit score is to make sure that you’re not applying for a lot of new credit cards too quickly, especially if you don’t have much of a credit history. In other words, it’s important that you don’t apply for a lot of new credit cards too quickly. This will help you keep track of all of your credit activities and how it may affect your credit score.

HOW TO PROTECT YOUR CREDIT SCORE FROM THE FIVE THINGS THAT WILL DAMAGE IT.

This isn’t a “how” when it comes to asking how to boost your credit score. However, I need to mention that we need to play defense. Cutting credit is a surefire way to end up with a bad credit score. As such, it’s important to understand what will damage your credit score the most and how you can protect yourself from those damaging situations.

According to Credit Karma, the top five reasons for damaging scores are:

Credit inquiries (Credit inquiries are when lenders make contact with borrowers to look into their credit history).
Debt collection (Debt collection is when you don’t pay off debt like student loans or credit card bills).
Unpaid balance transfers (Unpaid balance transfers are when lenders take funds from your bank account and transfer them to a new loan.)
Bankruptcies (Bankruptcies are when lenders have taken money out of your bank account and put it into your new loan.)
Medical bankruptcies (Medical bankruptcies are when banks have taken money out of your bank account and transferred it over to another person.)

If You Don’t Want To Do This, Hire A Credit Repair Business

When considering hiring a credit repair business, it is important to do your research and choose a reputable company. Look for a business that is transparent about its services and has a proven track record of success. Be wary of companies that make unrealistic promises or charge high fees. It’s also important to understand that credit repair companies can’t remove accurate and timely negative information from your credit report. They can help you to dispute errors, negotiate with creditors and help you to create a plan to improve your credit score. It’s also a good idea to check with the Better Business Bureau to see if the company has any complaints or red flags. Ultimately, the best way to repair your credit is to pay your bills on time, maintain a low credit card balance, and create a budget to manage your finances. We highly recommend either Credit Saint or Lexington Law Firm.