You’ve probably heard a lot about different strategies to improve your credit score from friends and family, on TV and via the internet. But these sources aren’t always the most reliable when you need tried and true methods for raising your credit rating – especially if you want to buy a home or car, or apply for other types of financing. So to filter out the good from the bad, check out these ways to get your credit numbers up.
Ways To Improve Your Credit Score
Pay All Bills on Time: Now is the time to change bad habits related your bills. Submit payment on all credit cards, mortgages, car loans, utilities and other accounts. Your payment history is 35% of your credit score, so making regular payments will improve your credit rating in time. If you have trouble remembering when payments are due, use your calendar to send a reminder. Or, you can set up automatic payments for certain creditors.
Keep Balances Low on Certain Accounts: There are two types of credit that are included in your credit score. Non-revolving debt includes such arrangements as car loans and mortgages. They have a fixed payment date that the debt will be discharged as paid in full. Revolving debt includes credit cards without fixed payment dates. You can continue to borrow from these, so long as you stay under you limit. Revolving debt is considered more risky, so a higher balance on these accounts will result in a lower rating. Pay them down to improve your credit score.
Minimize Outstanding Debt: To every extent possible, pay down all outstanding amounts that you owe. Start by paying credit cards and other revolving debt, especially those that include a high interest rate. Stay current on non-revolving debt as well, because these amounts are included in calculating your outstanding debt. As you pay these off, your credit score will improve over time.
Use Caution in Applying for New Credit: New credit makes up 10% of your credit score, so proceed carefully when applying for credit. A flurry of credit or loan applications is seen as risky by the credit reporting agencies and your rating will drop, especially if you don’t have a long credit history.
Check Your Credit Score Regularly: Obtaining your credit report alone won’t improve your credit score, but it will help you keep track of the changes and see how your actions are boosting your rating. You’re entitled to one free report per year from each of the three credit reporting agencies, so definitely take advantage of it. Review the information carefully, as banks, lenders and other creditors can make mistakes. If you do see an error, you can contact the credit bureau and contest the negative history entry. When you’re able to prove an inaccuracy, it must by law be removed within 30 days.
Credit Score Attorney in San Diego
If you’ve gotten too far in debt or behind on bills, some of these methods may not help you improve your credit score. Professional legal advice from credit score attorneys in San Diego is an option to consider for such remedies as credit restoration, debt settlement and other strategies.
Daniel R. Gamez, an attorney focusing exclusively in debt settlement, is licensed to practice in all state and federal courts in California and Texas. Mr. Gamez owns and operates the Gamez Law Firm in La Jolla, CA. For more information, please contact Daniel Gamez at 858-217-5051, firstname.lastname@example.org or visitgamezlawfirm.com.