Credit score ranges are one of the most significant measures of your financial health. It lets lenders take a quick look at how responsibly you use your credit. The better you score, the more chances you have to be approved for new lines of credit or loans. A higher credit score ranges can also get you the lowest interest rates available when you borrow.
If you would like to increase your credit score, there are a bunch of quick, simple things that you can do. While it might take a few months to watch your credit score improve, you can begin working toward a good score in only a couple of hours.
6 Secrets To Keep Your Credit Score Ranges High
- Make Your Payments On Time
Paying your bills right on time is the most crucial thing you can do to raise your score. VantageScore or FICO, two of the major credit card scoring models, view payment history as the most impactful factor when determining an individual’s credit score. For lenders, a person’s ability to keep up with their credit card payment displays that they are capable of taking out a loan and paying it back on time. However, your credit card bills are not the only thing that impacts your credit score. You must pay all of your bills right on time. This includes all your medical bills, student loan debt, and all of the utilities you have.
- Set Up Calendar Reminders Or Autopay
If you are someone who tends to forget easily, then paying your bills on time – that, too, every month might be no less than a challenge for you. There are so many due dates and so little time, plus remembering the details; it is exhausting. Well, what if we tell you that there is an easy fix for this? That is right! You can opt for autopay.
If you are not certain that you will be able to pay your bills in full, you can even set it up only to pay the minimum required amount. The same goes for your utilities as well. A lot of providers will let you set up autopay, which automatically withdraws every month from your savings or checking accounts (or charges your credit card). Moreover, when it comes to student loan companies, if you set up autopay, some of them will offer you a good discount on your interest rate.
If you do not wish to use autopay, there is another convenient option, which is setting up a payment later. A lot of card issuers and banks will allow you to schedule reminders via their websites. They will also agree to send you push notifications or email reminders (or even both). You can also set it to Outlook calendar or Google invites or make a note of the due date on a physical calendar. It does not matter what notification manner you use as long as you pay on time. The sooner you will begin on-time payments, the sooner your score will start to increase.
- Don’t Open Too Many Accounts At Once
VantageScore and FICO check the number of credit inquiries, such as requests for credit limits or applications for new financial products increases, as well as the number of new account openings. Making such sort of inquiries frequently dings your credit, so only apply for what you really require to avoid damaging your score. Moreover, if you have a credit score 651 or a near-perfect score, some issuers will straightaway deny you if you have recently opened too many accounts.
- Request A Credit Report And Dispute Any Credit Report Errors
It is wiser to look over your credit reports from each of the three major credit bureaus: Equifax, TransUnion, and Experian. You can proactively monitor your credit and receive free credit reports (one from each bureau) per year. However, it would help if you look out for any errors on your credit reports that might hurt your score. It might seem unlikely that your reports would have errors, but there is always a chance for some. So, be smart enough to look for them. If you cannot find time to spot these errors, feel free to contact Gifted Financial Services.
- Get Credit For Paying Monthly Utility And Cell Phone Bills On Time
If you are already responsible for making your cell phone payments on time, then you must check out “Credit Breeze” by Gifted Financial Services. This tool is the ultimate solution that shoos away all your problems related to your credit score. With this tool by your side, you can easily improve your credit scores.
- Pay Attention To Your Credit Utilization Rate
Your credit utilization rate (CUR) is your total credit card balance divided by your total available credit. For instance, if your CUR is more than 30 percent, and you have no issue paying your bills in full and on time, then contact your card issuer and ask for a credit increase. If you find it difficult to pay off your bills and you have a high CUR, it is wiser to figure out some areas where you can cut back your spending.
Final Words
The importance of having a high credit score cannot be exaggerated. It allows you to have the highest reward credit cards and makes sure you won’t have trouble when applying for a job. Moreover, it also lets you borrow money at the lowest interest rates. It is difficult to entirely escape the effects of having a mediocre or low score. You may not even be aware of who is seeing your credit history and who might use it in your favor or against you. It is based on obvious things, such as paying your bills on time. But the less intuitive and smaller things, such as:
1. Maintaining a really low credit utilization ratio
2. Diversifying your credit to both revolving accounts and loans
3. Increasing the age of your credit accounts
4. Checking your credit history regularly for errors
These are the additional steps that you need to take to elevate your credit score to the highest possible tier. Truly, yes, we are talking about 800.
