We all are quite aware of the perks and benefits that we would be missing out on with a poor credit score. You can forget about that favorite credit card or availing a loan offer on good interest rates.
Credit score may just be a figure on your credit report, but it determines so many things related to your financial life, leading many to ask, ‘how much will a tradeline boost my credit?’ Luckily, you are not stuck at rock bottom forever if you currently have a less than average score. Yes! There are so many steps that you can take to improve your credit score quickly and even, permanently.
Here are a few suggestions to begin with.
Tip #1: Get Rid of Pending Dues
If there is one thing that will do the most damage to your credit score, it is the pending or late payments on your report. Since these figures hold the most importance when calculating the overall score (almost 30%!), there are solid chances that your score is suffering due to unpaid debts.
You can request for a free credit report from one of the credit bureaus. This is to analyze where you are lacking. If you can see the data pointing out to a number of late payments or bills that haven’t been cleared, then this is where you begin your journey of improving the credit score.
Tip #2: Do Not Overuse Your Credit Card
So, hopefully, you will now be done with clearing the suffocating dues on your credit report. When the previous mess has been taken care of, it is equally important to plan your future use of credit card. After all, this tool would only be helpful if you learn how to use it smartly.
The best advice when it comes to credit card usage is that you should never empty it more than 30%. This is also referred to as credit utilization ratio and means that you should only use 30% of the amount that the card is offering you.
For someone who has a credit limit of $100, $30 may not seem like a handsome amount he is allowed to use in a month. However, every user should keep in mind that credit limits can only be increased with responsible use of the card. If you wish to enjoy a better credit line then you need to improve your credit score. Consequently, this requires you to tame your spending habits.
Tip #3: Take Professional Help
In case your credit score is looking damaged beyond repair then it is better to not take things into your own hands. More reliable alternative would be to contact a professional, trustworthy company that can help improve your score fast.
Obviously, this sort of help does not come free of cost. You will be asked to choose a plan and pay the subsequent fee. Nonetheless, what you are getting out of the service is helpful and useful so it is okay that you would have to spend a couple of extra dollars.
However, the bottom line is that whichever firm you choose to contact should be reliable. Unfortunately, there are many scammers online who can mis-use your personal information. Always go for a company that provides transparent contact information and, preferably, a physical office to contact in time of need.
Take-Home Message: Be Mindful of Your Spending Habits
Learning how to avoid a poor score in future is as important as getting out of this situation first hand. So when you have used the tips above to improve the look of your credit report, your next job should be to practice good spending habits and healthy credit card use to avoid damaging the score again later.
Moreover, don’t rely too much on credit card payments. Whenever you can save the credit line utilization, go for other modes of payments such as cash. Now there are even helpful apps that let you send money through PayPal to cash app make online payments. You can check them out and sign-up to have alternatives available in time of need.
So did you find this small guide useful? We hope it is able to help you kick-start your credit-fixing journey. Good luck!
