In these tough times, having a good credit score is the difference between owning that home that you have been dreaming about all your life and having the foul taste of rejection from mortgage companies in your mouth. Your credit score is more than just a number in the United States. Not only companies use your credit score to determine your eligibility for a loan or a rent contract, a bad credit score can keep you from getting the job that you have always wanted.
Your goal should be to be in the 700-730 range with your credit score. But you should never put a ceiling on how far you want your score to be. The higher your credit score, the better rates you get on your loans and credit cards. Besides, you don’t have to do anything drastic but to pay extra attention to your credit affairs. That would also help you become more fiscally responsible and live a better more comfortable life. So when it comes to your credit score, you should never stop improving no matter how high your credit score is.
There are several ways that you can improve your credit score. But it is necessary to be patient when it comes to increasing your credit score. Improving your score could take as live score low as a few days or it could take months depending on the current state of your credit.
So here are ways that you can improve your credit score and be on your way to a better life:
1. Check Credit Reports: The first method for boosting your credit score is to check credit reports for errors. You would be surprised how often people find errors on their credit scores that could be fixed without much trouble. But if you don’t check your credit report, you won’t know it in time. So, if you ever suspect that your low credit score is caused by an error, you should contact the credit reporting agencies and challenge them about the report. Most minor credit issues can be fixed within 30 days if you are persistent enough with credit agencies.
2. Pay Your Balances On Time: The whole concept of credit worthiness revolves about your tendency to pay back your debt on time. Think about it. If you keep paying your debt balances on time, it shows credit card and loan companies that you are trustworthy enough for them to issue you better loans. I suggest you pay your monthly balances in full or close to it to avoid interest fees. But at minimum you should pay more than your minimum monthly payments.
3. Manage Your Debt Account: you should stay on the conservative side when it comes to opening new debt accounts. The more credit cards you have, the riskier you are. I know people who have achieved excellent credit with 10 or more credit cards, but that will only happen in a long run. Keep in mind that adding new accounts brings extra work and requires more diligence on your part. I recommend you don’t apply for more than 3 credit cards while you are still in credit building process.