5 Steps to Boost Your Credit Score:
If you want to be offered the best interest rates on credit cards and loans, you’ll need to make sure you get your credit score as high as you can. And, even though a perfect credit score is possible, not everyone may be able to achieve it.
However, there are certainly several things you can do to take charge and make sure you get the highest credit score you can possibly get. Eventually, you’ll achieve perfection, and some of the ideas here might just surprise you.
1) Don’t Shy Away from Credit:
Another way of putting this is, if you don’t use it.. you just might lose it. Here’s why. It’s only by having credit that you will start to build up a good credit profile. The reason is that you need to prove you’re a good risk to credit providers. Quite simply, if they can’t see any evidence that you’ve got credit, and that you’re reliable when it comes to making timely repayments, then there’s no method of judging whether you may be credit worthy.
2) Don’t Overdo the Credit Applications:
It’s a good idea to have a portfolio of different types of credit. You could have credit cards, a car loan, and a mortgage, all contributing nicely to your overall credit score. But, make sure you aren’t always applying for yet another credit card when you may already have several. You shouldn’t need a pocketful of different credit cards.
Stick to a limited number of cards. Perhaps a couple of Visa Cards and a MasterCard which provide you with a variety of features, as well as an American Express Card. Then make sure you manage your credit card usage wisely.
3) For a Perfect Credit Score – Everything in Moderation:
So, you’ve got a few credit cards, and you want to concentrate on boosting your credit score. You can achieve this by using your cards in moderation. Make modest purchases on a regular basis. Don’t run up huge credit card debts. To credit providers this signals danger.
If you keep your debt relatively small, you can pay it off in full each month. This is going to work in your favor. You’ll be given a credit limit when your card is issued, and it’s wise to stay within about 30% to 40% of this amount.
4) Always Make Your Payments on Time:
Even if you don’t pay off your credit card balance in full every month, make sure you pay at least the minimum payment and make your payments on time. Missing payments is the death blow to your credit score. In fact, the credit bureaus treat your payment history as one of the most important aspects when they are calculating your credit score. Miss a payment, and it will go onto your file. Every time this happens, you’ll damage your credit scores further. Don’t do it!
5) Rely on the Experts:
If you’re determined to get the highest credit score for yourself, consider using a credit monitoring service. There are several very good ones to choose from, and their job is to regularly scrutinize your credit reports. They will pick up on any attempts to fraudulently obtain credit in your name, as well as other red flags indicating potential identity theft.
The FTC estimates that as many as 10 million Americans have their identities stolen each year. When criminals steal your identity, their actions can have a negative impact on your credit score for years to come. Credit Monitoring is a very inexpensive way to stay on top of things to be sure you do not become a victim.