Have you ever had a friend or family member, for example who opined about their credit score every time thoughts came up about buying a new car, trying to purchase or refinance a house or just sign up for a random credit card?
Of course that has happened to you, and the real reason they’re so concerned with those purchase is because their credit score is struggling mightily. That three digit number is your make or break when it comes to lenders deciding if you’re worth the risk or not.
If your credit score isn’t so good, and you’re struggling quite a bit to get it to where you want to be, you might be missing some very easy tips and tricks to fix it, some of which are so rudimentary that you’d be surprised so many of us miss out on them.
The first is easily the most obvious, and that is simply paying on time. Your bills aren’t going anywhere, and whatever obligations and debt you have at the moment need to be met head on and paid on time. That due date is what it is (although some can be moved or negotiated) and just by paying on time you can not only increase your credit score but also keep whatever your number is steady at worst.
You never want to get past the 30 day mark, as that is when creditors will begin to report the late payment to credit agencies or collection departments.
Another way to work on your credit score centers on debt specifically, and most of us can’t pay it off in one fell swoop but rather you want to focus on your debt ceiling, and start paying down cards that are close to reaching their maximum limits. For instance, if you have a credit limit of five thousand dollars, and your balance is about 100 dollars less then that, you want to get that one paid down rather quickly.
Finally, if you have credit cards that you aren’t using, the natural reaction is to simply close them and “rid” yourself of the temptation to use them. The fact is closing accounts actually dings your credit report, and you better bet is going to be leaving them open and just reminding yourself not to use them since you already have a ton of debt as it is.
Your credit score doesn’t always define you in totality when it comes to money or being able to borrow it, but it’s a huge factor that you can’t, nor should you, overlook completely.
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