How to Improve Your Credit Score
How to improve credit score can be a uphill battle. A good credit score is more than just a want, but more of a necessity. In the world we live in today, people have different dreams, aspirations and goals that they want to achieve. In the quest of achieving these dreams, they may want to borrow money to sort out certain things that are serving as hindrances to the accomplishments of their goals.
However, over time some people have always had challenges in borrowing money from individuals and lending organizations. In most cases, these people are considered not credit worthy as they may have some bad credit. This can easily limit their chances of getting loan from any lender if nothing is done about it.
Has your loan request ever been declined in the past due to your credit score? Well, your problem ends today as this article is tailored towards helping you to how to improve credit score.
A credit score is a record that shows or evaluates the creditworthiness of an individual and this score is usually based on credit history. This record is statistical data that analyze the credit activities of an individual over a period of time and how often he is able to pay his debt when due.
Credit scores are an important parameter used by lending institutions to ascertain loan eligibility of an individual as well as the terms of most loans. Generally, people with a bad credit score may find it extremely difficult to get loans and if they do get the loan, the terms of such loan may be of a huge disadvantage to you as the borrower. This is due to the risk of lending money to such people with poor credit.
So How To Improve Credit Score You May Ask?
However, if you have a bad credit score, it is not actually the end of the road for you when it comes to applying for credit. This is due to the fact that there are ways of improving your credit scores and make you creditworthy again. Some of the ways of improving your credit scores are;
- Check Your Credit Report: One of the easiest ways how to improve credit score is to periodically check your credit report and review it for errors. Once you detect any errors on your reports, dispute each error with the three major credit bureaus: Equifax, Experian and TransUnion, and preferably by mail. This process will help erase errors from your credit report and help increase your credit score.
- Negotiation: Most people that end up not paying their debt when it’s due may not be intentional. Some may have lost their jobs after borrowing the money. In situation like this, make sure that you negotiate with your creditor so that they don’t leave a bad record on your credit report. You can put it in writing that if they remove the debt of an account that went to collection during that period, you will pay the outstanding balance at once. Make sure they agree to this in writing. If this works for you, this will impact your credit score in a positive way.
- Set Up A Payment Reminder: Paying your debt on time or before it’s due, can positively affect your credit scores which will in turn improve your creditworthiness. To make this easier for you, we recommend that you activate payment reminders with your lenders to remind you via text messages or emails when your next payment is due. This will show the promptness of your payment on your credit report, improve your credit score and gives confidence to any lending institution that you are applying for a loan from.
- Check your credit limit: A credit limit is the maximum amount of credit a credit card company allows you to spend on a single card. Ensure that your credit limits are very current and always spend below the limit. This is because once you exceed your limit on a credit card it will definitely hurt your credit score. As part of being conscious in your spending and borrowing habits, use no more than thirty percent of your total credit card limit in order to improve your card utilization, thus helping your credit score.
- Request for an credit limit increase: Another great way of how to improve credit score is by asking for more credit. If you know yourself as a disciplined spender, you can ask your creditors to increase your limit. This limit could be as high as $3000 dollars. However, it is always good to be careful when you are using this approach to improve your credit score and it is better for people who are highly disciplined in their spending. This is because with this new limit, some people can improve their spending habits as well. This can lead to you going over your credit limit each month and this will send a bad message to any lending institution you approach for a loan. And it will definitely affect their confidence and trust when it comes to approving your loan request.
- Don’t Hint at risk: Lenders are always very careful as they don’t want to be lending to someone who show a history of not repaying loans. In lieu of this, it is highly recommended not to do anything that could sink your credit worthiness. The two areas that these borrowers always have an issue with are the areas of missing payments and paying less of the agreed amount. With these records on your credit report, it will affect your credit score drastically.
Once you proactively follow the above guidelines, you can easily improve your credit score over time. However, most people will always prefer the services of credit repair and restoration specialist. This is because of the fact that they always give professional advice that will help to restore your credit score.
There are several credit repair specialist today, but one of the most reliable experts in this area that people consult often is New Life Credit Help LLC. They are highly experienced in their area of expertise and always go extra mile to ensuring that their clients’ credit related issues are restored.