Do you want to boost your credit rating so that it is easier to obtain a loan for a new house, or buy that new car you liked, or even reduce your interest rate? Evelyn Calabuch, president of American US Insurance, a Florida Insurance Agency based in Boca Raton says that to have a good credit rating, you need to make your payments on the agreed terms for a reasonable period and prove your financial institution they can trust you. On the other hand it can take a long time, but fortunately the credit rating does not stop there.
Below are six fast actions to take to quickly increase your FICO beacon score in the concise term and thus improve your credit rating:
1. Pay Your Past Due Balances to Bring Your Accounts Up to Date
Being late in your regular payments seriously affects your credit rating, especially if it is 60 or 90 days or more delinquent. This can lower your score by up to 100 points, even if you have had a good credit experience so far. It is therefore crucial that if you seek credit, that you adjust your accounts so as not to show any delays. Banks will not want to lend money to someone who cannot currently make their regular payments; something says that this person is having cash flow issues and is trying to transfer their problems to the bank. Next lender.
2. Fix All Your Accounts in Collection
Collections are stains that can sit on a credit bureau for a long time, and sometimes you become clueless about where they came from! This is another aspect that significantly affects your credit score, and if you want to improve your rating, be sure to get rid of it. Contacting the credit bureaus as well as the other lender involved, and fixing the problem, getting rid of this unfavorable information will quickly increase your score. You may also affiliate to a credit repair organization like UCES, and they will make the process a lot simpler.
3. Significantly Lower Your Balance on Credit Cards and Lines of Credit
Didn't you know? Using your revolving credit to its limit will harm your credit rating. So please do not run to the banks asking to lower your limits believing it will help, instead let the banks increase your limit and you work on reducing your balances to a reasonable level. This will reveal you are not desperate to use your cards and somehow creates a more trustworthy projection of yourself. Dropping your ratio below 50% is good, but below 30% is even better, it will systematically increase your credit rating. Just be careful, the new unused portion of your credit card is not there for planning new purchases, you want to keep the balance relatively low to keep a higher score.
4. Keep Your Old Accounts Open
The older your account is, the more favorable will impact your credit score as long as it remains minimally active. If you have not used it for a long time, usually six months, the credit score algorithm might skip it. Then give your old credit card a second life. Make your next gas payment with it but be sure to pay the balance in full after.
5. Avoid Making Credit Requests
Each time you ask for a new credit line, it creates an inquiry on the credit bureaus and automatically lowers your score. To avoid a drop in your points, make sure you stay away from unnecessary new credit applications for a reasonable period. Taking a step back on these credit applications will gradually increase your rating, especially if the previous four points are followed.
6. Make Your Inquiries Within Days
If it comes to the point where you are in a car shopping spree; for example, and you go from one auto dealer to the next one trying to find your dream car, then it is advisable to do your purchase within seven to fourteen days, so that all inquiries for financing falls within that period. Credit bureaus will see many inquiries on your file, but they will count it just as one, since the system will realize it was due to a single event. The car shopping
There is an old-fashioned saying in the credit world which says that banks only lend money to people who do not need it, which is not entirely wrong when looking for low interest rate loans. These six tips can help you maintain a healthy credit score and therefor increase your credit worthiness while showing that you are a less risky person, should you ever need to borrow money at any given time. But in case you are struggling with old bad credit history, collections, and erroneous negative reports, then there is a solution for you. Get help from a reputable credit restoration service with 15 years of experience, like UCES, and you will see the benefits in just a few months.