How to Improve Credit Scores in 7 Easy Steps

Increase Credit Scores in 7 Easy Steps

If you would like to know how to improve credit scores you’ve come to the right place! Credit scores may take into account years of your past history and your current credit related decisions. Nevertheless, you can undertake the following steps to start your journey on how to improve credit scores.

1. Get Your Credit Report
The first assignment is to know where you stand in terms of your credit scores. There are a lot of free tools out there like Credit Karma.  The credit reports we have clients use is Smart Credit. It provides all 3 Credit Bureaus unlike the free tools. To get an accurate vision of your entire credit profile it’s best to see all 3. 

2. Do a Thorough Analysis of Your Credit Report
The second step on how to improve credit scores is to analyze your credit report carefully. Why bother with reviewing the credit report? Often, lenders and credit companies make mistakes. Therefore, it’s not uncommon to find accounts that look strange to you, dates that don’t at all match up, particularly concerning penalties or late payments.

If you spot any incorrect details, you can use credit repair services. It’s worth investigating ways on how to improve credit scores with credit repair companies. That phone call may be all you need to give your credit score a bump.

3. Pay Bills on Time

If you’ve a low credit score (anything below 620) and don’t know how to improve credit scores, know that you have adequate time to make things right. If your history is
synonymous with late payments, you should turn it around by paying your bills on time. You should mark your calendar, set reminders, and keep a close eye on your bank accounts spending and saving. In a nutshell, do what you can to pay monthly bills on time. After doing this for several months, your credit score will start to improve.

4. Focus on Paying Down Credit Card Balances                                         

One of the most overlooked ways on how to improve credit scores is paying down credit card balances to around 10% of the credit limit. For example, if you have a credit card with a $1000 limit, it’s best to keep the balance at $100. You can use the card, but make sure the balance is 10% of the limit before the billing cycle ends. 

5. Open New Credit Lines or Get Added as an Authorized User
Your payment history accounts for 35% of your score! So if you don’t have any good revolving payment history your scores will definitely show it. One of the best methods on how to imrpove credit scores is to open credit building credit cards. There are other methods like being added as an authorize user on someone that has a seasoned credit line. Of course make sure they have used the credit line responsibly before adding yourself. 

6. Set up Auto-Payments
Payment history contributes to 35 percent of your overall credit score. This means the
earlier you make payments and the more you make them, the more it improves your credit
score. To keep the momentum, set up various automatic payments with your creditors and lenders and request for bill payment deadline alerts as well. You will find this useful if you have problems paying bills on time.

7. Dispute Negative Items on Your Credit Reports
By law our credit report must be accurate, fair, and verifiable. It’s common for the credit bureaus, collectors, and creditors to be violating all these. If you have negative accounts on your credit reports, one of the fastest ways to increase credit scores is to dispute the negative items for deletion. This is one of the major functions of a good credit repair company.

 

As You Can See There Are Very Practical Ways on How to Improve Credit Scores. 

If you’re needing assistance from a professional credit repair company feel free to schedule a time that would work for you to discuss your credit scores. 

 


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