Boosting your credit score is easy if you try following these 5 easy steps. A good credit score is essential in determining if credit providers and financial organizations take you on as a client and provide you with credit when needed. Your credit score is determined by a credit bureau after an analysis of your personal credit report. Your personal credit report details the amount of debt you have and how you pay the bills etc. Kore Capital, providers of customized finance solutions, outlines 5 ways in which you can boost your credit score.
Build a credit file
Begin the process of building your credit file by opening one or more new accounts. This will trigger notifications to the major credit bureaus. Having several active accounts can substantially help you build a good credit score. Adding yourself as an authorized user on a family member or friend’s credit card can help your credit score, too. However, it is imperative that they use their card responsibly and effectively.
Avoid non-payments
Your credit score depends largely on your payment history. Thereby, if you have been paying your bills on time over a period of time, chances are you have an excellent credit score. However, do not miss loan or credit card payments by more than 29 days. Because credit bureaus receive reports on any past due payment over 30 days. Kore Capital recommends setting up reminders, notifications, or automatic payments on your bank account to avoid late or non-payments.
Fix your past-due accounts
Did you know a late payment can reflect in your credit report for as long as seven years? However, you can make this situation better by making all your accounts, old and new, current. This will, in turn, prevent additional late fees or more late payments from being reflected in your credit report.
Bringing down revolving account balances
Are you someone who always pays their bills on time but has a high balance on rotating credit accounts? We hope the answer is no, as this can adversely affect your credit rating as you are considered to have a high credit utilization rate.
Limit opening accounts often
We know we said opening credit accounts and keeping them active can be great for your credit score. However, it is also recommended to limit the frequency with which you apply and submit credit applications. This is because every time you apply, your credit report is subject to a hard inquiry, leading to a compounding effect on your overall score.
For more information on how we can help you with tips and advice to boost your credit rating, contact Kore Capital today!