No Way But Up: Tips on Raising Your Credit Scores
According to Credit Cards, credit scores are perhaps the most important determining factor that will either allow or disallow you to qualify for a loan, and determine just how much interest you have to pay for them. This is because your credit score, as reflected in your credit report, is sort of a reflection of your financial “self,” or a resume and record of sorts that creditors and other individuals can see that can help determine your “standing” as a part of your country’s economy.
Average credit scores are along the 670 to 739, with 740 to 799 being very good scores, and 800 and above being exceptional. Of course, the goal isn’t just to reach the average credit score, but to at least try to aim for higher digits. Here’s a few ways to raise your credit score:
- Remember to study your credit report and your current finances. Try requesting for a copy of your credit report now for analysis, as they are free. Check the document as soon as possible if they have errors, as this contains the data needed to calculate your credit score. Try to make sure that payments listed have the right information, and the numbers in there are correct as well. If there’s any error, try to file a dispute. If not, then make sure to take note just what kind of spending you’ve done in the past year and compare it to your plans for your finances.
- Remember to start making a long term plan. Take note, though, that you did read “long term,” which means with the data you have now, try to make an assessment of what you want to achieve in the future and what kind of things you have to do to achieve them. For instance, if you want to clear all your debt within 10 years, what sort of adjustments should you make in order to be able to do this? If you think these adjustments are a bit extreme, then try to adjust the parameters of your long term goals.
- Remember to make sure you try your best to reduce the debt you owe as much as possible. This concept is easier said than done, but try as much as possible to reduce what you owe by analyzing your current accounts. Check how much you owe for all your current debt and try to formulate a strategy as how to tackle them more efficiently. If need be, try to consolidate them into a single debt and you can start paying that single debt at perhaps a reduced rate over a set period of time.
- Remember that you have to be prepared for lifestyle changes in order to achieve a better credit score. If you want to eventually avail for a mortgage or a car loan, then you may have to make adjustments to your lifestyle in order to meet the a high credit score to boost your chances of successfully applying. However, these adjustments shouldn’t stop there as you should be able to try to consistently follow good financial lifestyle habits.
Remember that raising your credit score can be difficult, but it’s not impossible. Following the best practices above is key when it comes to getting yourself a high credit score, and if you want to reap its benefits, you may have to start adjusting your financial lifestyle as early as now. Click here to learn more about your other legal options when it comes to your finances.