Your credit score affects where you live, the car you drive, and the amount of interest you pay on loans. This means having a good credit score can simplify your entire life. The best part is, no matter your monthly income, with the right habits anyone can have good credit. In this article, we will share 8 proven ways to boost your credit score.
1. Check Your Credit Report for Errors
Checking your credit reports can be an important step towards improving your credit. According to studies, errors in credit reporting are common. This means that your credit score can be heavily impacted by mistakes credit reporting agencies have recorded in your credit report. This means that your true credit score can be higher once these errors are corrected.
How to check your credit score
request a copy of your credit report: There are services that allow you to check your credit report. using services like AunnualCreditReport.com, this service will help you request a free copy of your credit report.
Identify errors: Carefully review your credit report to identify mistakes in the reporting process.
Files disputes regarding inaccuracies: By law, credit reporting agencies have to correct inaccurate information regarding your credit report. Filing disputes will cause credit reporting agencies to update inaccurate information that could be harming your credit score.
Partner with an expert: Partnering with an authority on the subject can help ensure all inaccuracies on your credit report are corrected. WBC consulting group has experts who specialize in helping you obtain your true credit score. We dispute inaccuracies and provide legal representation if necessary. fixing inaccuracies can help you obtain the credit score that you truly deserve.
2. Pay Down Outstanding Balances
One of the key factors in maintaining a high credit score is painting a good credit utilization rate. This is a measurement that represents the amount of available credit that you use on a monthly basis. For instance, if you have a $1,000 line of credit, your should aim to use no more than $300 a month. A low credit utilization rate shows financial institutions that you are financially responsible. In order to maintain a low credit utilization rate, you should pay down debts, and keep an eye on the monthly expenses being charged to your credit cards.
3. Avoid New Credit Inquiries
Applying for new loans or lines of credit results in what is known as a hard inquiry. Hard inquiry temporarily decreases your credit score. When applying for a loan for a car, a mortgage, or a new rental property a negative mark on your credit usually follows. To avoid hard inquiries accumulating on your credit report, you should get preapproval when necessary. You should also avoid applying for too many loans at once, and only apply for loans that you have a reasonable chance of being approved for.
4. Become an Authorized User
If you have a friend or family with good credit, you should consider asking them to become an authorized user on one of their credit cards. This can be another way of showing financial stability and boosting your credit. Be sure to only become an authorized user on lines of credit that belong to responsible people with good credit scores. This is because poor credit habits on the line of credit can also affect your score.
5. Set Up Payment Reminders and Automate Payments
Payment history is the most crucial factor in your credit score, accounting for 35% of the total. Late payments can significantly damage your score. Set up payment reminders or automate your payments to ensure you never miss a due date. Timely payments over time can have a significant positive impact on your credit score.
6. Use a Secured Credit Card
A secured credit card is another way of building a good credit history. They are a safe way to show that you make payments on time. A secured credit card works when you make a deposit and borrow against the money you invested. Put simply, you deposit your money and borrow the money from yourself. For example, if you deposit $1,000 in a secured credit account, you will have a $1,000 line of credit. This means that you can spend this money as long as you pay it back at the end of the month. In order to actually receive the benefits of a secured credit card, you should follow the same rules as with an actual line of credit. Meaning that you should aim for no more than a 30% utilization rate. And of course, you should always pay your bills on time.
7. Diversify Your Credit Mix
To ensure that your credit score is as high as possible, you should diversify the types of credit you have. This means you should strive to have different types of loans on your credit report. Having mortgages, lines of credit, tradelines, and the like will help demonstrate financial responsibility. However, always follow the #1 rule. Pay all of your bills on time. It is also important to note that the age of accounts is a factor contributing to your credit score, so don’t open and close credit accounts too quickly.
8. Work with a Credit Repair Expert
So far, we’ve provided you with a wealth of knowledge on how you can increase your credit score. By reading this article, you are already ahead of most people when it comes to the knowledge you need to increase and maintain your credit score. However, a credit expert has the tools and experience needed to reliably deliver the results that you want to see. Partnering with a credit repair agency (like WBC Consulting) can accelerate your results. Book a free consultation today to speak with one of our experts and get your credit on the right track.
Conclusion
Following the 8 steps. in this article can help you boost your credit score as quickly and predictable as possible. With a combination of healthy habits and expert guidance, you can have a high credit score. And like in most things in life, talking to the right people can help fast-track your path to results. Book a free consultation today to speak with one of our experts, and get the high credit score that you’re looking for.