Your credit score can have a huge impact on your mortgage, your job potential, and eventually your life. So, it is high time to think about monitoring your credit score and also improving it. Make the most of 2020 by increasing your credit score with the help of these 5 great tips.
Monitor Your Current Scores and Reports
Before you try to increase your credit score, it is important that you analyze your current scores. Also, it is advised to get your credit reports checked from three different agencies as this information from credit reports are going to help you calculate your credit scores, which is why they have to be accurate.
Enhance Your Limits
Credit agencies are going to look at your card limits and also the overall level of credit. To increase the limits of your card, you can always contact your credit card issuer. Increasing the limits of your card can help in suppressing the debt usage ratio. But, at the same time, it is important that you don’t take the higher limits as an excuse to start spending more.
Suppress Your Debts
Your credit score can highly be impacted by your debt-to-credit ratio, which means the smaller the percentage, the better it’s going to be. It is advised not to go beyond 20-25{97ebb4701c7419f910053119b8a9daadf2f89de2a6116e4aa4a1b52d3aae147d}. If your debt is something more than this, make sure to lower it in the year to come. Look out for various ways to minimize your monthly spending or increase your monthly income. Calculate all your debts and get a pay-down plan so that you can easily keep up with that plan.
Make Use of Old Cards
Canceling or abandoning a credit card that has been with you for a long time can just have a negative impact on your credit scores. If you happen to have a card that you don’t use much, it is advised to keep it with you rather than just cancel it. Keep the card and make use of it for minor payments like cable or utility. Also, it is better to apply for new cards only when it is highly needed.
Consider Paying All Your Bills on Time
Timely payments of your monthly bills can help to increase your credit score. And if you have had trouble with this in the past, consider setting reminders or work out with banks to build automatic bill payments. Your track record of bill payments accounts for nearly 35 percent of the whole score, so consistent bill payments can certainly make a huge difference.
The most convenient way to increase your credit score is by being alert and careful all the time. So, be a smart consumer and implement all the above mentioned 5 points to improve your credit score at the earliest.
