A fundamental thing that you need to remember with respect to your credit score is that it is not going to improve overnight. The score, after all, is an accumulated reflection of all your financial transactions over the years. Just as it took years for it to go bad, it will also take its own time to come back on track. However, using certain strategies you can speed up the process. Take for example the case of how a mom was able to raise her credit score in just about 90 days, and that too accidentally, details of which you can read at https://creditsecrets.tumblr.com. Let us take a closer look at some of the key strategies that can help improve your credit rating.
List old debts
A lot of people do the mistake of trying to delete information regarding some of their earlier debts at the first instance they are able to clear it off. But why not show the old debt? It is because this way you will show the authorities concerned that you have been regular at paying your installments and clearing off your debts. This is a credit secret that many tend to ignore, all because of the dread of the word ‘debt’. Remember good debts is only going to add to your credit score.
Consolidate your credit cards
Quite often people tend to accumulate debts over different credit cards. Financial experts, however, recommend that if you are someone who is using multiple cards, it makes more sense to clear off any small balance that you may have on some of them. What this will mean is that you will eliminate the need to use a couple of the credit cards. Once you pay off the nuisance balances, you can have one or two credit cards, which you can then use for your everyday purposes. Apart from enabling you to have a better control over your credit card spending, this strategy will also help you keep a track on your credit record too.
Many times without our knowledge our credit report may be going for a toss because of some wrong calculations. It is therefore important that you keep a constant watch on your score. It is estimated that no less than 25% of all credit reports are said to have some kind of an error. Remember, even a small error could leave you in trouble. Similarly, even a small correction could immediately boost your score. If you are not someone who is good with crunching numbers and calculations, you can always take the help of a friend or a colleague who may be well versed in these things and would be able to spot errors in your report.
Request for an increase in your credit limit
There is one more credit shortcut that you can take. Just asking your credit card issuer for a higher credit limit. Remember, if you are someone who has been a loyal customer of the credit card company for a while now and has a decent enough credit history, there are chances that it won’t say “no” to your request. Just in case the company doesn’t accept your request, you can also try asking for a new card. While there would be greater scrutiny of your payment record with the request for a new card, chances are that the company would agree to increase the credit limit.
Pay your bills on time
There is one credit secret that everyone knows. The more prompt you are with paying your bills, the better you will be your credit score. There is no rocket science behind this simple logic. Just in case you are facing some tough times financially, with a little bit of planning, you can come out of the situation and improve your score. Sit down with your family and prioritize your spending. If there are a few areas where you can cut down on your spending, then do so immediately. Remember, the more you keep postponing such decisions, the more are the chances of your debts spiraling beyond control. Planning is one thing, adhering to it is another. Make sure that you don’t deviate from the plan and pay all your bills on time. Within no time your score would be the envy of others.
Don’t swipe your credit card for everything
There is a general tendency among people towards making all kinds of payments. Watch this as part of your financial habits and your score could be on its way to recovery. Make sure that you use your credit card judiciously. It is also important that you each time you whip out your credit card, you keep a tab on the spending. Remember, once we get used to spending regularly on the credit card, we can get habituated to spending more. Under using your credit cards is the way to go.
Negotiate with the credit card company
Credit card companies are often seen as these bullies who won’t listen to anyone. Nothing could be further from the truth. If you are willing to present your case before them in detail, then they too would be willing to listen. For example, if you have been a customer for a long time with a credit card company and had gone through a period of unemployment sometime earlier and this led to you not paying off your credit card dues, you can always explain the situation to them and request for a one-time “loyalty adjustment”. There are chances that the credit card company will listen and heed to your request. Remember, the chances of your credit scores improving lie with taking such proactive steps.