When you want to boost your credit score, there is one thing you want to hear: tips to boost your credit score. Well, there are many things you can do to boost your credit score to the acceptable level. It doesn’t matter the scores you have currently, but what matters is what you are doing to improve your scores.
What to do?
Here are some tips of do’s to help increase your credit ratings
1. Active Accounts
The first thing you should have is an active account. Your credit score can be defined as how good you have managed your credit account in the past. This is the reason you need an open and well run account that will reflect how good you have managed it. You cannot have good credit scores if at all you don’t have a credit account or you have mishandled it. If you keep on closing your credit accounts you too won’t have any points to show. If you have bad credit, you can start with a secured card or even a bad credit credit card.
2. Pay Your Bills On Time
The one mistake you don’t want to commit is giving the impression that you haven’t changed your bad habit of late payments. Ensure you always pay your bills on time, including those that are not reflected on your credit report. The factor with the greatest effect on your credit card is payment history. Once you correct it, you can be sure of improving your ratings.
3. Lower Your Credit Balance
The amount of debt you have is another factor that will affect your score. The standard debt percentage that you should never cross is 30%. However, since you are trying to rebuild your credit score, you should ensure you maintain a debt not close to 30%. Many people with excellent credit scores will have a debt of less than 10%. If you can maintain this level, you can be assured of an increment in your scores.
4. Do Not Close Old Accounts
It is not advisable to close your old credit accounts. Credit age is one very important factor that is considered during credit score calculation. The age of your oldest account is taken into consideration as well as the average age of all your accounts. Your old accounts help in these two situations, so keep them open and active. Otherwise, closing them will lead to deleting of your payment history as well as reducing tour average credit accounts age.
5. Open New Accounts Only When Need Be
Every time you open a new account or make a new application, your credit score is hurt. Additionally, your average credit score is reduced. However, you cannot desist from opening new accounts completely. Thus, you only should open an account when need be. For instance, when rebuilding your score, you should open a new account.
6. Operate Different Accounts
Your credit score is further boosted by operating different types of accounts. For example you can operate both a credit card and a mortgage at the same time. This will help boost your score. However, you should desist from taking huge loans just for the sake of boosting your score. A small manageable loan is all you need.
7. Remove Negative Info
Another way of making things right is by working on getting rid of negative information from your credit report. However, this is no easy task. You can do this by disputing inaccurate entries from your credit report. Two, you can opt to use information furnisher to get rid of entries with a goodwill offer or pay for delete.
Now you have what it takes to build your credit card scores to the acceptable level. You have all the steps you need here with you and it’s now a matter of how you respond that will determine whether you will continue languishing in bad credit scores or you will finally get good scores.