As you probably already know, credit scores are important, and even more so when purchasing big ticket items, such as houses and cars. This is why it’s so crucial to have a good credit score. So, how can you get your credit to a good level?
For starters, look into your credit history and find out what your credit score is. Every year, you can get a free credit report from all three credit bureaus.You can also monitor your credit using paid services, such as PrivacyGuard and myFICO. Personally, I use free apps like Credit Karma.
Besides the perk of being free, Credit Karma offers personalized recommendations on how to increase your credit score. Beware of all the credit card promotions that pop up there, though. The good thing is that your credit score will not take a hit if you check it on Credit Karma; and you can check it as many times as you want, even if your credit is frozen. If your credit is already frozen before using Credit Karma, you have to unfreeze it first. After that, you can still refreeze it and get access to your credit information.
Now let’s talk about what you came here for: increasing your credit score. Here are some ways to go about it:
- Look at your credit report and rectify any errors or missed bills that you were not aware of. For example: one of my clients discovered she owed a hospital, and her information was sent to debt collection agencies. She had no clue. After she rectified that situation, her score improved.
- Set up payment reminders or autopayments in order to avoid late payments and establish a history of paying bills on time.
- Reduce your debt. This is the fastest way to increase credit, and it will reflect on a monthly basis.
- Keep balances on credit cards and other revolving credit low.
- Leave unused accounts open and use it twice a year to keep it active.
- Shop for a given loan in a short time frame.
- If you are in a financial bind, call your creditors to make payment arrangements to prevent them from sending your information to debt collectors. It’s always better to call first.
In conclusion, get a hold of your credit report, address errors and/or debts, and keep debt low. Use this process and watch your credit score soar!
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