7 Sure Ways to Raise Your Credit Score
You need a healthy credit score to secure credit, loans, mortgages, and favorable interest rates. Low credit is often a result of reckless financial decisions and can be difficult to raise. However, raising your credit score is not impossible, even though it may take time to get back to healthy levels. Below are some of the steps you can take to improve your credit score:
Check your credit report
The three major credit bureaus issue a free report for people once a year. Request your credit report and review it carefully to ensure that all the information is accurate and up-to-date. Take note of the things affecting your score and work on improving them.
Dispute errors on your credit report
Credit report errors can be anything from incorrect personal information to incorrect account balances. These errors can reduce your credit score by up to 25 points. Dispute any error your find on your credit report with the issuing bureau. 618
This may help improve your credit score.
Pay your bills on time
Late payments can affect your credit score. Pay all your bills—including credit card payments and loans—on time, and you will see an improvement in your credit score.
Pay down your debts
High levels of debt can hurt your credit score. Work to pay down your debts, prioritizing those with the highest interest rates. Aim to keep your credit card balances below 30% of your available credit.
Avoid opening too many new accounts
Opening too many new accounts can hurt your credit score. New accounts make you appear risky to lenders. Only open new accounts when necessary and space them out over time.
Keep old accounts open
Keep your old accounts open, even if you're not using them. Closing old credit accounts can hurt your credit score because it reduces your available credit and shortens your credit history.
Get a secured credit card
A secured credit card is an alternative to a regular credit card. Secure credit cards work like traditional cards. They require a deposit and can help you build your credit score.
Conclusively, raising your credit score takes time and effort, but it is worth it to improve your financial health. 618