A credit score can be something that bothers you when it comes to your financial situation.
Your future seems much less stressful and more optimistic in its perspective when you can be the lucky “resident” of the top tier with your credit score above 750.
Consequently, your bank can offer you a loan with a better rate and the insurance company shows more pleasant and hopeful attitude towards you.
You are on the top when your FICO credit score rates 750 or higher.
You are on a second position if your mark is set between 700 and 750.
Even when you drop below 700 your situation is not so hopeless, yet the score rating no more than 650 becomes the reason to be worried.
The optimistic theory says that it depends on us and it is possible to improve our credit score.
TIP: To check your credit score use free services like Quizzle.
One thing is certain –you must work for your financial credibility and have it in mind while making any decisions connected with your finances.
If you have no clue how to increase you credit score use these tips and aim at the top tier:
- Begin with essentials and get fully informed about your situation on the start line. Get the free report and check it for errors. If you find incorrect information, dispute it right away.
- Say goodbye to your credit cards. It is significant to be less extravagant and think twice before paying with money you do not have in your hands at this very moment. It is better to buy something in cash and be sure you can afford it here and now. So say goodbye but…
- Do not close your old credit accounts. They can be useful as they provide longer credit history.
- Consider higher limits on your card. The debt utilization is lower when the limit is higher. Your utilization should not be higher than 40%, but the aim is under 20%. You can lower the percentage by paying down the balances and increasing the limit.
- Be punctual in your payments. Pay everything off on time and remember to buy only as much as you can pay for immediately after receiving your bill.
- Try something else. It can be very helpful for your score when you have an opportunity to show that you are able to pay two different kinds of debts like the revolving one, in the case of your credit card, and the installment debt. You can open for example a personal loan, mortgage, buy a car and pay in installments.
Although it may seem quite difficult for some of you, it is achievable. Thus, it really is worth the effort and a bit of time to develop a certain strategy for your finances. Finally, remember that the strategy must include the aim and lots of determination to complete the challenge.