Not all of us have prime credit rating but you want to get your score up for some reason. Maybe you want to get a good rate on your home loan or you’ve been eyeing a job where the employer will take a look at your credit score. Maybe you simply didn’t find a good credit history when you got your free annual credit report.
Whatever it is, below are 5 tips on how to get credit score up.
- Low credit balance – If you can, reduce your credit card balance to only 10% of your credit limit. The same goes to all of your other revolving credit. The less balance you have at the end of every month, the better it is for your credit score although sometimes, whether you pay your credit card in full or partial every month does not even matter. What is reported to the three credit reporting bureaus is simply the amount that you have accumulated irregardless of the amount that you paid on your due date.
- Pay your bills on time – Not only is a late payment reflected on your credit report but the number of days the late payment incurred will be on your report. If your excuse is that you are always busy and sometimes oversee paying your bills, you can set-up an automatic payment method for that. That way, you are sure to have improved credit history and you don’t have to worry about due dates since your bank account will automatically pay for the bills.
- Check for errors – Errors naturally do appear on credit reports so be sure to check yours thoroughly to make sure that an incorrect detail is not affecting your score. Get your free credit report annually to detect discrepancies the soonest. Common errors to watch out for are late payments, unpaid balances and inaccurate credit limit. Even if the error seems to be minor, you should still contact the credit reporting bureau to dispute this.
- Keep good credit on your report – A lot of people call the credit reporting bureaus after they have paid off a loan asking to have that loan erased from their report. As long as it was a good credit, it is better to have it remain on your report. It will increase your score and prove that you can pay your monthly dues on time as well.
- All existing accounts – is your cellphone subscription history on your credit report? Are your on-time payments reflected on it? Make sure that all the bills that you pay for monthly are reflected on your credit report. Bills including cable provider, internet provider and other utilities. All these monthly payments can increase your credit score.
None of these tips will take overnight. It will take a month at least. That’s the time when all of your information will be updated on the three credit reporting bureaus. And a month of following all of these steps will do you no good either. It will require consistency for you to see results. So more than a quick fix, make these tips a habit.