Your credit score is the first thing most lenders see when you apply for new credit. It’s what tells lenders ‘yes, let’s move forward’ or ‘no, you are too much of a risk.’ According to Experian, the average credit score is 703, which often secures borrowers good interest rates and terms. To help you put it into perspective, there is a 1.5 percent difference in APRs offered to borrowers with a 760 credit score and a 620 credit score.
Are you worried that your credit score isn’t high enough? Try these four ways to increase it.
Try Out a Credit Repair Company
If your credit report has inaccuracies, they won’t go away until you address them. Many issues are so complex that consumers just leave the issue, letting it ruin their credit score. A credit repair company specializes in handling the disputes and inaccuracies. They know your rights, and the process needed to remove or repair the issues on your credit report.
Unfortunately, most consumers do not know about the credit repair process and that it is a legal way to increase their credit score. Especially with the negative view towards this relatively small and quiet industry. However, more and more financial companies are implementing credit repair teams within their organization and are beginning to service thousands of consumers.
Consider a Purchasing a Tradeline
If you need your credit score increased quickly, consider buying access to someone else’s account. You don’t buy permission to use their credit card or loan account, but you buy access to their tradeline. Borrowers with great credit sell access to their top tradelines, making you an authorized user on the account. This puts a ‘good’ tradeline on your credit report temporarily, increasing your credit score.
Make Your Payments on Time
This option is free! Just get current on your payments. Don’t assume your credit is beyond help once you make payments late. Consistency and dedication help your credit score. Bringing your accounts current may have a small immediate effect on your credit score, but as you continue making your payments on time, your score will increase regularly.
Give Reputable Credit Repair Software a Try
If you’d rather handle your credit repair yourself, consider downloading reputable credit repair software. Each program has different features, but overall, they pull your credit reports, review them, and tell you the necessary steps to fix your credit. Most programs don’t do the work for you, but many provide templates, logs, and encouragement to help you keep disputing and fixing your credit.
Benefits of Having Good Credit
Good credit is essential for almost anything you want to do. Whether applying for new credit, refinancing your student loans, applying for a new job, or new insurance, your credit score plays a role. It could mean the difference between loan approval and denial or even getting a job or not getting a job.
Not only that, but you’ll get the best interest rates and terms on loans, get better insurance rates and have fewer security deposit requirements on utilities, renting apartments, and even buying a new cellphone.
The Bottom Line
Everyone needs good or at least decent credit and it’s only possible with regular credit monitoring and maintenance. Catching errors or fraudulent activity right away is crucial, as is paying your bills on time, and not overextending your credit.
Take care of your credit and it will take care of you when you need it most.
credit rating form -DepositPhotos