While improving your credit score is no easy task, it can be a very rewarding experience once you look back at where you started. The beautiful thing about increasing your credit score is that it will open doors to new financial products, such as loans and mortgages. All of these financial products will have lower fees and interest rates as well, saving you money in the long run.
If you’re looking to improve your credit score, follow some of these tips below:
Make Your Payments On Time
One of the most important things to consider when it comes to your credit is your on-time payments. If you have a long history of on-time payments, your credit score is probably pretty good. The more on-time payments you make, the better your credit score will be, as it shows you’re a responsible borrower. If you begin missing payments, the credit reporting agencies will get word of it and will put delinquencies on your score.
Keep Your Credit Card Balances Low
If you carry large credit card balances, you can do damage to your credit score. For this reason, we recommend keeping your balances as low as you can, as often as you can. Having large outstanding balances in relativity to your available credit is a bad look. A lender that sees that will be far more reluctant to give you a brand new line of credit, as they’ll see you as someone who is financially strained.
Keep Credit Cards Open
There is this ongoing myth out there that you need to close credit cards in order to maintain a good score. That myth is the opposite of true. Closing a credit card can actually hurt your score, as you’ll no longer get to take advantage of the credit limit, or the history it has built up.
If you keep your credit card open even when you’re not using it, you allow the credit utilization data to help you out and boost your score.
Apply For Credit Cards Only When You Need Them
Every time you apply for a new credit card or loan, a lender will have to check your credit report. When a lender checks your credit report, a hard inquiry gets added. Hard inquiries can put a dent in your score, and too many in one year can impact your score negatively. A lender that looks at your credit score and sees a lot of inquiries might feel that you’re trying to take on too much debt without the ability to make payments on time.
Here at Personal Tradelines, we’re all about making sure that our customers have a good understanding of tradelines so that they can make the right financial decisions for themselves.
We understand that working towards good credit can seem like an uphill battle, which is why it is so important to have a company by your side to provide you with all of the necessary tools and knowledge to get you through the process with ease.
If you are ready to take your first step on your journey to better credit, make sure to get in contact with us!