Devising the method that can help improve your credit score
Obtaining new credit if you have a low credit score is going to be tough. So it is extremely important for you to go on maintaining the credit score, so that your credit application doesn’t get denied. Whenever, you will be applying for new credit, you should check if your credit score is at its best. Therefore, if you find that your credit score is not too good, it would be better for you to work hard on improving it. So, how can you get back a good credit score?
Tricks that can help increase the credit score
The tricks which can always help you with the improvement of your credit score are:
- Lowering the amount charged on credit cards – You need to lower the amount charged on the credit cards. If you carry too high amounts on credit cards, it can have a negative effect on your credit score. It can help you not only in maintaining the credit score, but also to become debt free soon enough.
- Maintaining fair lines of credit – Simply any one or single type of credit would not help you with improving the credit score. Maintaining different types of credit lines can actually help you with improving the credit score. For example, having some credit cards won’t be of much help for your credit score, even if you maintain low balance on these and even if you make the on-time payments. You need to obtain a mortgage, and other loan types.
- Correcting all of the mistakes on credit reports – It is important for you to check the credit report from time to time. While checking the credit report, make sure that you go through it carefully. Most of the times, wrong debts get listed on the report, and this has a negative effect on your credit score. In order to see improvements in your credit score, it is important for you to dispute these listings with the credit bureaus.
- Change address if you have relocated – If you have relocated to a new place, report this to the creditors and the credit bureau too. Otherwise, the letters from different creditors will never reach you, thereby making it hard for you to find out when you are supposed to make the payments. Therefore, your credit would be hurt too as the late or the missed payments are going to be listed on your credit reports. This again is going to lower the credit score.
- Be aware of your rights as a consumer – A consumer has various rights and it is important for you to be aware of these. There are various rights for you as the consumer, which can help you in managing debts more easily. For example, you need to be aware of the FDCPA, the FCRA, the SOL and the debt verification along with the debt validation procedures. The collection agencies are supposed to follow the FDCPA or else, you can report them to the State Attorney General.
- Try paying down the highest balance first – In case of the debt payments, you can try paying down the highest balance first. This is going to help you in becoming debt free soon, and to do away with the pressure of handling so much of debt.
- Keep low usage of the credit cards – It is extremely important to maintain low usage of credit cards, as these easily lead you into debt. Debt again affects your credit score negatively.
So, the above are the options through which you can go on to improve your credit score. If you want to solve your credit problems easily, you can visit – www.creditmagic.org/forums/