Improving your credit score is more similar to a marathon than to a sprint. Despite your credit score take into account your past behavior, you present actions also matter. So, here are 4 things you can do to improve your credit score at a fast pace.
4 Ways To Improve Your Credit Score
#1: Watch Your Credit Card Balances:
One factor that has a major influence on your credit score is how much revolving credit you have vs how much you’re using. The smaller this percentage is, the better your credit score is. As a rule of thumb, you should consider having it at 30% or lower.
What you can do to improve your credit score faster is to make sure that you pay all the balances and that you maintain them as low as possible. You can also talk to the credit card issuer to see if you can make several payments a month.
#2: Get Rid Of Credit Card Balances:
Better than to keep watching your credit card balances is to actually get rid of them. You probably have more than one credit card. And if you’re charging $50 in one and $60 on the other one, you can actually combine the amounts and use only one credit card.
#3: It’s Ok To Have Old Debt On Your Report:
Most people believe that having old debt displayed on their credit report is a bad thing. So, as soon as they end up paying their car loan or home mortgage, for example, they immediately grab the phone to make sure they can get these loans out of their credit report.
However, this is not the right way to do it. In fact, you’ll need 7 years to have the negative items removed from your credit report. But, you do have bad debt and good debt. And the loans that you paid entirely are good debt. You act accordingly to what was established and you paid everything as agreed. So, this is actually a good thing for your credit. Just like it is when you have some good old accounts. You may actually not need them but they are good for your credit report because you already have a good repayment record.
#4: Pay Your Bills Always On Time:
One important and easy-to-comply factor that influences your credit score is to pay your bills on time. And in what comes for credit report, it’s as bad as not paying them as it is when you’re delayed. If you’re trying to save money for a major purchase, that’s fine. But just don’t be late with your bills just because of that.
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