5 Ways To Improve Your Credit Score
Our credit scores reflect our overall financial health. Any venture that we undertake, whether it is applying for a loan, getting insurance, getting a job, or purchasing utilities, people do look at our credit scores. With an impressive credit score, it's fairly easy to acquire the loans you are seeking or better rates and no deposits.
The higher your scores, the more favorable your chances of qualifying for credit cards and loans. However, if your credit history is not in an admirable position, we will help you figure out ways to improve your credit score in this blog. With the suggestions coming from Texas best credit repair company, your scores will likely go up instead of being dragged down!
Have A Look At Your Credit Report
The first to do before you get down to increasing your credit score is to get a copy of your credit report to know what score you are at. Your credit report is a record of all your debt, credit, and repayment history. Our favorite 3-Bureau Credit Report is through Smart credit, it will provide you with a full report and tools and information need to better your credit scores.
Dispute The Errors
You are entitled, through the FCRA to dispute any credit report errors by writing to the relevant credit bureaus. Errors that occur, due to incorrect information, can hurt your credit scores and must be resolved.
Do Not Max Out Credit Cards
Always having your credit cards at the limit raises your credit utilization ratio. The credit utilization ratio is a measure of your credit card balances relative to the credit limits, this account for 30% of your credit score. You can work out the ratio by dividing what you owe by your credit limit. The greater your balance, the higher is your credit utilization, which then results in a lower credit score.
On Time Payment History
Your payment history accounts for 35% of your credit score, making it an important determinant of your credit. Being further behind on your payments hurt your credit score. With the new credit card spending curbed, you can use the savings to catch up on your credit card payments before they are written off. Payments history is crucial to a better credit score, one late payment can drop your score over 50 points.
Keep Your Accounts Open
Closing credit cards or installment account will impact your credit score. Therefore, unless it is truly necessary keeps positive accounts open even if you are not using them. If you try closing credit card accounts that have become delinquent, it will still show up on your credit report until you pay it off. So, it is best to keep the account active by paying what is needed to get it back in good standing. This is only if the account is still with the original creditor.
If you are looking for reliable credit repair in El Paso TX, Approved Credit Resources can offer you perfect assistance in every respect.