Your credit score is something that you should guard with your life due to the negative consequences of having a bad credit score. This is a three-digit number that can affect you in many facets of life such as a applying for loan, mortgage or car approval. It can also play a part in whether you’re allowed to rent in certain places as well as your chances of getting certain jobs. If you’ve racked up a good amount of credit, you may think that the game’s over and that there’s nothing you can do. In this post, we’ll take a look at practical ways of raising your credit score back up to a respectable level.
Dispute and Ask for Adjustments
Your bank, credit lenders and credit bureaus aren’t perfect. At the same time, they have a human side and are more likely going to want to have you as a client for a long time. With this knowledge, you should look at your credit report and report as well as dispute any discrepancies. In addition, you should consider talking to your preferred credit card bureau and ask them to write off certain debts such as those you may have incurred due to a one-time emergency. They are more likely to say yes, although this may still stay on your record, attracting much higher interest rates in the future.
Start Paying Everything on Time
Delinquency is one of the major causes of a bad credit score. Each late payment is taken into account, creating a credit score that threatens to plummet back down to the 300’s. Commit yourself to start paying your bills on time as this wills slowly start raising your credit back up to a respectable level. Consider automating payments since this will ensure you never miss a payment.
Don’t Cancel Your Credit Cards
A lot of people might instinctually reach for the scissors and cut up their credit cards in a last-ditch effort to save their sinking scores. This is counter-intuitive since you need credit cards to build up creditworthiness.
Move around Your Credit Card Balances
Ideally, you should make sure that you don’t have more than 30 percent of your credit limit to debt ratio on each card. You should endeavor to move your balances around in order to reach this goal, and consider opening a new card that you can use as a base card to help you balance everything should you not have a decent balance on your existing cards.
Be Careful With Card Use
A lot of people can’t help themselves in the face of credit. If your credit score is in the red, consider only using your cards 30 percent of the time and paying your way using cash or debit cards. If you can, go even lower at 10 percent since this value is what will raise your FICO score the fastest.
A bad credit score doesn’t have to be the bane of your existence. With these quick and easy tips, you’ll be able to rebuild your score in no time and keep it at an acceptable level.