10 Proven Tips To Improve Your Credit Score

building credit

Back in the 1980s, the FICO score was invented. The FICO score, also simply known today as a credit score, consists of a few areas of evaluation using metrics taken from people’s personal information banks and credit reports. People’s FICO scores can range anywhere between 300 and 850, with 300 being the lowest or worst score one could possibly receive. Without FICO scores, lenders would be required to carefully process all debt and financial history that people have stacked up behind them. Thanks to the advent of credit scores, the lending evaluation process is made many, many times easier. Here are 10 ways that I’ve personally had success beefing up my credit score with.

1. First Off, See If You Can Dispute Any Charges

Millions of Americans find themselves to be victims of cybercrime each and every year. Although financial institutions, credit bureaus, and other entities in the field of financial service provision do a great job at keeping unauthorized debts off of creditors’ credit reports, they sometimes make mistakes. In most cases, fraudulent activity isn’t even detected in the first place. To see if you’ve got any debts that you can rightfully contest the ownership of, seek out a free credit report from TransUnion, Equifax, and Experian, the three credit reporting agencies of FICO scores and related credit histories and their analyses in the United States.

2. See How Your Overall Credit History Looks

You might be able to point out accounts with low balances, for examples, that could easily be closed, in turn helping your credit score tick upward a few points. Remember – you can get credit histories for free across the Internet.

3. Don’t Pay For Any More Items or Services With New Credit Cards

As Patricia Russel, a Certified Financial Planner (CFP) from FinanceMarvel advises “the more credit card purchases you make and the higher credit card debts get, the lower your credit score will be”. One reason behind this fact of dealing with credit scores is that the credit utilization ratio, calculated by dividing your current outstanding credit card balance out of those cards’ credit limits. The lower you’re able to keep your credit utilization ratio, the higher your credit score will be.

4. Refrain From Applying to New Credit Cards

Credit scores are lower when they’re calculated shortly after you apply for one or more new credit cards. This is because, at least when people are purposefully planning, they are much more likely to seek out many debts from tons of lenders if they plan on skipping out of all of their creditors’ claims.

5. Satisfy All Balances That Are Past Due

Do you think lenders feel safe about lending to borrowers with past due accounts on their credit histories? Make sure to pay these balances first, if possible. Your credit score will thank you soon enough.

6. Don’t Give Up

Poor credit scores are a cause of stress for many Americans. Unfortunately for these people, rebuilding their credit scores is a long, hard process that many people skip out on. As such, make sure to never give up on your goals of beefing up your credit score.

7. Professional Credit Counselors Could Help

The United States is home to tens of thousands of professional credit score improvement consultants. These professionals have tons of experience right up the alley that you’re interested in.

8. Any Outstanding Debt Means a Lot

Did you know that three-tenths of your credit score will be calculated using how much outstanding debt you have? As such, it makes sense to pay off any and all forms of debt as soon as possible. Keep in mind that, in general, the more accounts you can close, the better the credit score bump is.

9. Try to Negotiate With Creditors Directly

Although they might not budge, you could successfully pay off one or more debts by only satisfying half of creditors’ claims against you. Negotiating can get you a better credit score.

10. Strive to Keep Credit Card Lines Open

The longer credit card accounts are kept open while they remain in good standing, the longer you need to leave them open.

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