4 Easy Ways to Improve Your Credit Score Today
If you have recently been denied for a loan because you didn’t have a high enough credit score, you probably want to do whatever you can to raise it. Unfortunately, most banks tell potential customers that they cant discuss the formulas they use to calculate credit scores. Fortunately, hundreds of financial professionals have analyzed credit scores and have developed techniques that people can use to raise their scores.
Our Favorite Ways to Increase Your Credit Score Today.
- Ask for an increase on the credit limit of your credit cards. A big part of your credit score is how much debt you owe compared to how much credit has been extended to you. If you increase your credit limit, the amount of credit that has been extended to you will increase, along with your score. Call your credit card companies and ask if they can raise your limit. Even a couple hundred dollars will help.
- Formally dispute inaccurate information. There is a debate as to how much this actually helps, but it definitely doesn’t hurt. At the very least, it seems that some of the disputed accounts are temporarily pulled off a credit report.
- Make payments on everything. The less money you owe on your credit cards and loans, the higher your credit score is. Ideally, pay off as many smaller accounts as you can. If you can’t do that, then just reduce your credit card balances as much as possible. Also, remember that your timeliness on all of your other bills can effect your credit score. Paying your electric bill on time is just as important as making your car payment on time.
- Consolidate your debt. Debt consolidation immediately pays off all of your debts and replaces them with one fixed loan. Because it’s fixed, most credit agencies don’t consider it towards your ratios (see item #1). If you have no other debts, this can raise your score significantly. Just make sure that you lee p the credit accounts open after you pay the debt off. Just take the cards out of your wallet so you don’t run them up again.