5 tips and tricks on how to raise your credit score
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Establishing good credit isn’t impossible. Check out these tips on how to raise your credit score.
We all know that establishing good credit can be a difficult thing to do. You have to eliminate debt, pay your credit card on time, and work hard. With that being said here are a few tips on how to raise your credit score.
Pay your bills on time-Delinquent payments, even if only a few days late, and collections can have a major negative impact on your FICO Scores. Also don’t let anything (such as your electricity) get cut off either.
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Pay off debt-This is very crucial. If you have debt like student loans do yourself a favor and pay them off as fast as you possibly can. One of the best things you can do as far as student loans go is to make large lump sum payments.
Watch your credit card balance– One major factor in your credit score is how much revolving credit you have versus how much you’re actually using. The smaller that percentage is, the better it is for your credit rating. You definitely want the percentage to be less than 40. So if let’s say your credit card has a limit of $750 you definitely don’t want to spend $600.
If you don’t have one, get your first credit card– Having one or two pieces of plastic will do good things to your score as long as you don’t charge too much and you pay your bills on time. In other words, be a responsible user of credit. Only use your credit card to buy things you can actually afford. Or you can get a store card. For example, if you are a big fan of Victoria’s Secret you can get an Angel card. Then use your Angel card to get a few goodies each month, pay them right off and you are on your way to having a good credit score.
Check your credit report and see what you need to work on-If you have a low credit score you definitely need to know why. Figure out what you need to pay off. Figure out what you need to do to raise your score. Maybe your school loans have defaulted or you need to pay down your credit card. Either way find out what the problem is and nip it in the bud.
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