3 Massive Credit Score-Boosting Tips
If you’re planning to grow a business, various credit score-boosting tips will help you qualify for a loan. Most lenders are willing to issue a loan if your credit score exceeds 700, and interest rates will be higher when someone has a low credit score under 620. Boosting your credit score is about working smart rather than hard. Let’s get right into the credit-boosting tips.
1. Understand Your FICO Score
FICO stands for the Fair Isaac Corporation; institutions use this to determine if you qualify for a loan and the loan’s interest rate. Once you understand your FICO score, you can make a conscious effort to avoid bad credit. Your FICO is the same as the credit utilization ratio (CUR), which is your credit limit compared to the credit used.
Suppose someone has a credit limit of $3,000 with a balance of $1,000. Divide the balance by the limit to calculate your FICO, and the credit utilization ratio would be 33%. Credit rating agencies consider credit utilization ratios under 30% as good. The higher your credit limit is, the better your chances are of a good credit score.
Therefore one of the biggest credit score-boosting tips is that you shouldn’t cancel a credit card you don’t use. You may also request an increase to your credit limit to improve your FICO.
2. Lower Your Credit Card Debt
Try to get a loan with a lower interest rate than your bank. Cash USA and Personal Loans are organizations specializing in debt consolidation.
Next, you should apply for a credit card with a 0% annual percentage rate. Transfer the card’s balance with a high balance to lower the interest rate you were paying on credit card debt. Cards with a 0% annual percentage rate don’t attract interest once you repay within the required time frame. Repay our new credit card within 20 months or a year.
3. Monitor Your Money Habits Every Day
Whenever you pay a bill or buy something, think about the effect it will have on your credit. Plan on how you’ll save and spend your money. If you don’t have a credit history but need a loan, consider adding your utility and rent payments to your credit report. Additionally, you must take responsibility for your credit report by checking if the information is accurate. There are credit repair companies that can check this for you.
Secondly, you need to avoid late payments. It is bad for your credit if you don’t have the money upfront to pay an overdue bill. You need to get a personal loan to pay on time or sell something at home that you no longer use. The credit bureau should remove situations like late payments, repossessions, and evictions from your credit report after 7- 10 years because that’s old history. If you notice old information on your credit report or information that doesn’t seem logical. You should file a dispute with the FTC consumer advice by clicking here.
Finally, do not allow organizations to record your payment as late if you paid 30 days before the due date. Late payments are bad for your credit score. Closely monitor your credit history and contact the institution if something needs to be adjusted.
Don’t allow bad credit to stop you from achieving your personal and business goals. There are measures you can take to improve your credit score. Develop good money habits and ensure that you take control of what institutions have recorded for your credit. Take action on your credit history and file a dispute once necessary. Would you like access to the secret list of lenders that banks never let you see? Click here to discover the list of lenders and credit agencies banks pull from.