Do you know what your credit score is?
There is an alarming number of Americans who, unfortunately, don’t have the slightest clue as far as where their credit score stands. One recent survey suggested that about 30 percent of people don’t know their credit score.
If you want to be able to qualify for a credit card, an auto loan, or a mortgage in the near future, you need to know your credit score. You also need to know how to increase your credit score to get it as high as you can.
A high credit score will increase your chances of getting approved for loans. It’ll also make it easier for you to get approved for apartments, jobs, and more.
Here are 6 easy ways to improve your credit score once you find out what it actually is.
Check for Errors on Your Credit Report
In addition to finding out what your credit score is every so often, you should also get into the habit of inspecting your credit report carefully. Browsing through your credit report can provide you with valuable insight on how to increase your credit score.
It’ll also allow you to keep a close eye out for any errors that might exist on your credit report. Studies have shown that about 20 percent of Americans have at least one error on their credit report.
A simple error on your credit report could make you look a whole lot riskier than you are to potential lenders. You can have errors removed quickly to bring your credit score up without much effort on your part.
Make Sure You’re Paying Bills on Time
Have you fallen behind on one or two credit card payments in recent months? You might not think that this is a big deal, but it could have a huge impact on your credit score.
It’s important for you to pay all of your bills on time every month to remain in good standing with the credit bureaus. If you pay even just one bill late, it could drag your credit score down.
If you suspect that you might have trouble making payments on credit card bills, get in touch with your credit card company sooner than later to explain your situation. You might be able to avoid having your credit card companies report your delinquent payment to the credit bureaus.
Pay Off as Much Debt as You Can
Are you carrying around a lot of debt at the moment? If so, you’re not alone!
The average American has almost $40,000 in personal debt, not including their mortgage. That kind of debt can be crippling to some people and can make them feel hopeless with regards to their financial future.
If you have anywhere close to that amount of debt, come up with a plan for how you’re going to pay it down—and stick to it. It might take you a few years to work yourself out of debt, but it’ll be well worth it in the end.
You may want to consider Captaincash loans to consolidate your various debts into one. This will make it easier for you to manage debt as you move forward.
Avoid Closing Credit Card Accounts
As you start to pay down debts, you might be tempted to close your credit card accounts down. The last thing you want to do is keep them open and rack up new debts in the future.
If you have a serious problem and feel like you have no choice but to close your accounts, it won’t be the end of the world if you do. But by keeping credit card accounts open, you’ll free up lots of available credit for yourself.
This will send your credit score skyrocketing. Even if you don’t ever touch your available credit, it’ll work wonders for your credit score and improve it by leaps and bounds every month.
Try Not to Apply for Too Many Loans at Once
Over the course of your life, you’re going to find yourself in different scenarios that will call for you to apply for credit. You’ll apply for new credit cards, auto loans, mortgages, and more.
Applying for new loans is fine. But you should try not to apply for too many loans at once. That alone will bring your credit score down by at least a few points every time you do it.
Creditors will also be less likely to give you a loan when they see that you’re applying for a bunch of loans at once. And they might force you to take on high interest rates if they do extend loans to you.
Keep Tabs on Your Credit Report Over Time
As long as you follow the tips listed here, you shouldn’t have any problem figuring out how to increase your credit score. But you shouldn’t stop checking your credit report once you see an increase in your credit score.
Generally speaking, people should check out their credit report at least once every year. If possible, they should do it even more often than that.
By checking your credit report, you’ll reduce the chances of identity theft taking a toll on your life. You’ll also be able to monitor your credit report to get ideas about things you can do to increase your credit score even more.
Be Patient When Learning How to Increase Your Credit Score
When you’re first learning how to increase your credit score, it can be frustrating. It takes months, if not years, to bring a credit score up to an acceptable level.
Don’t let the process get you down. Even though you might get frustrated at times, you can bring your credit score up a lot when you’re willing to work at it. It just takes time for your credit report to reflect all the big changes that you’re making in your life.
Read through our blog to see some of the different ways that you can save money and improve your financial situation in a hurry.