5 Tips to Improve Your Credit Score for Good
A credit score can be good, fair, or bad – but it’s never permanent.
That’s why looking for ways to improve credit score numbers should be at the top of your financial management list. Credit scores can stand in the way of student loans, purchases, housing, and even employment.
5 Life Hacks to Improve Credit Score Confidence
Here are 6 easy ways to improve your credit score numbers for good.
1. Stay on Top of Your Credit Report
Three of the top credit bureaus in the country offer credit report copies for free, and it’s worth your time to give each a thorough review. This way you can see the biggest influences on your score, including timely payments, credit card balances, and the variety of accounts in your name.
Once you pinpoint the reason for your score, you can work to improve credit score numbers by making more on-time payments, lowering credit card balances, and more. You can also check for errors that may be lowering your credit score incorrectly.
2. Stop Applying for New Accounts
Every single time you pursue an additional credit line, your credit report is hit with a hard inquiry. This type of inquiry may lower your score up to a year after you apply for an account (and it can stay on your credit report for up to two years. Instead, do a little research before applying to determine the likelihood of approval, since denials fuel lower credit scores.
In addition, you may improve your credit score by putting a freeze on applying for multiple cards in a relatively short amount of time or right before you take out a mortgage. Those are major red flags that can each have a big impact on your score.
3. Pay Your Bills on Time No Matter What
One of the best ways to improve credit score numbers is to commit to making your payments on time — and that means every single time. On-time payments are a major factor in your score, and even one late payment can lead to a 110-point fall even if it’s just a month late. If your lateness goes past a month, your credit score is likely to fall even further.
If you need help keeping track of all your account due dates, consider using one of many apps that can organize your due dates and send you alerts. You can even choose to automate payments to take the guesswork out entirely.
4. Pay Down Your Debt
Your history of making payments on time is the top factor in formulating your credit score, but your amount of debt is a close second. However, in place of your debt-to-income ratio, rating agencies use credit utilization which is 30% of your credit score. Credit utilization refers to your overall debt amount that’s outstanding on everything from home equity lines or credit cards.
Most financial experts recommend keeping your credit utilization under 30% to improve your credit score. For example, if you have a $10,000 limit on a card with a $3,000 balance on it, that’s a 30% utilization ratio.
5. Be Patient
Knowing your credit score and taking steps to improve it is half the battle. But it’s important to recognize that improving your credit score doesn’t happen overnight. It takes determination, responsible planning, and conscientious money management to turn it all around.
Raising your credit score is more difficult than lowering it, but if you use one of the above tips, you’ll slowly get to a number that will be extremely beneficial to your financial well-being. Even though improving your score moves slowly, what’s important is your commitment.
Address a Financial Emergency Quickly
The longer you ignore a financial emergency, the more likely your credit score will suffer. If you need help moving past a financial emergency, one option is a title loan online.
Whether you need to cover a pressing car or home repair or pay an emergency room bill, a title loan is designed to help you cover an emergency quickly and easily. Your vehicle’s title is used as collateral — don’t worry, you keep your car — in exchange for a short-term loan to be paid off over time.
It can take as little as 30 minutes to qualify for a title loan online of up to $15,000 at Delaware Title Loans, Inc.
To begin, just head to our homepage and fill out the short title loans online form. One of our loan representatives from a location close to you will give you a call to answer any questions you may have about title loans. They will be happy to guide you through the rest of the easy process.
Get Started Today!
Taking time to improve credit score numbers is one of the most responsible approaches to proper financial management. Don’t let a financial emergency derail your plans. Get started online, give us a call, or visit us today.
Note: The content provided in this article is only for informational purposes, and you should contact your financial advisor about your specific financial situation.