HOW TO IMPROVE YOUR CREDIT SCORE

when did you check your credit report last time? if not, request for free credit report here.

I hope, you got your credit score now. is that enough score to get credit from any financial agencies? if your answer is yes, then you don't have to read this article further. if it is no, you can continue with your trails to boost your credit score. Really,It's important to note that repairing bad credit is a bit like losing weight. It takes time and there is no quick way to fix a credit score. Credit scores take into account years of past behavior you can find on your credit report, and not just your present actions. In fact, out of all of the ways to improve a credit score, quick-fix efforts are the most likely to backfire, so beware of any advice that claims to improve your credit score fast. The best advice for rebuilding credit is to manage it responsibly over time. If you haven't done that, then you need to repair your credit history before you see credit score improvement. 

There are some steps you can take now to start on the path to get better credit score.

Be cautious in checking of Your Credit Report

Don't request any third party to check your credit report (third party websites, friends or relatives who are in financial sector). Because it reduces your credit score. So please get report on your own. (How to get free credit report in india)

Have a look on your credit report:

Once you got credit report, just have a look over it to know what affects your credit score and make Sure Your Credit Reports Are Accurate

Check these common errors:

1. Is all of your personal information accurate? (That can include your Social Security number, birth date, full name and address.)

2. Are all of your credit accounts being reported?

3. Are there any late or missed payments listed that you remember making on time?

4. Are there any accounts or applications for credit you don’t recognize?

5. Are there any items from decades ago still appearing on your report?

Keep in mind that a credit report from one bureau may have an error, while another may not. That’s why it’s so important to check your credit reports from two or three different credit bureaus for inaccuracies. You may find none, a few or perhaps many errors on your reports. That’s where the next step to improving your credit comes in.

If you find an error on all three credit reports, you’ll have to dispute it separately with each credit bureau, as they’re run separately from one another. You’ll also have to file a separate dispute for each error you find.

So, Now start our repair work to resolve disputes in credit report.

If you have missed payments, get current and stay current. 

Delinquent payments, even if only a few days late, and collections can have a major negative impact on score. The longer you pay your bills on time after being late, the more your credit Scores should increase. The impact of past credit problems on your Scores fades as time passes and as recent good payment patterns show up on your credit report. And good Scores weigh any credit problems against the positive information that says you're managing your credit well.

Set Reminders & Use your calendar:

Making your credit payments on time is one of the biggest contributing factors to your credit scores. most of the banks offer payment reminders through their online banking portals that can send you an email or text message reminding you when a payment is due. with these, you can set remainder yourself on your calendar to avoid irregular payments. You could also consider enrolling in automatic payments through your credit card and loan providers to have payments automatically debited from your bank account, but this only makes the minimum payment on your credit cards and does not help instill a sense of money management. you can use your calendar app on your smart phone.

Reduce the existing debts you owe:

This is easier said than done, but reducing the amount that you owe is going to be a far more satisfying achievement than improving your credit score. The first thing you need to do is stop using your credit cards. Use your credit report to make a list of all of your accounts and then go online or check recent statements to determine how much you owe on each account and what interest rate they are charging you. Come up with a payment plan that puts most of your available budget for debt payments towards the highest interest cards first, while maintaining minimum payments on your other accounts.

Maintain low balances on credit cards and other "revolving credit":

The most effective way to improve your credit scores in this area is by paying down your revolving (credit cards) debt. In fact, owing the same amount but having fewer open accounts may lower your scores.

The reason this strategy can boost your score. One of the items your score considers is just how many of your cards have balances. That’s why charging 10000/- on one card and 50000/- on another instead of using the same card (preferably one with a good interest rate) can hurt your credit score.

The solution to improve your credit score is to gather up all those credit cards with small balances and pay them off. but Don't close unused credit cards as a short-term strategy to raise your scores. Then select one or two go-to cards that you can use for everything and try to keep balances low. 

Don't open a number of new credit cards that you don't need, just to increase your available credit. Refrain from applying for credit needlessly

Build a Strong Credit History:

Re-establish your credit history if you have had problems. If you have a short credit history, there’s not much you can do quickly here to improve your credit. You could try to piggyback on a friend or family member’s credit card if they have a long history of on-time payments. Have them add you as an authorized user, however you may struggle to find someone willing to do so since they would be responsible for any charges you make. Your other option: Wait it out and don’t close any accounts.

Apply a new Credit Card:

If you’ve never had a credit card before, your scores may be suffering because of that account mix factor we talked about earlier. Just make sure you make on-time payments — a new credit card account with a bad payment history will hurt you, not help you improve your credit scores. If you have a fair, good or excellent credit score, there are many credit card options out there for you

Don’t Repeat Old Mistakes Unfairly Haunt You:

If you’ve filed for bankruptcy, gone into foreclosure or suffered through a short sale, you may be wondering when the credit score misery ends. How long will it really take to get out of the credit score hole you’re in? For all of these mistakes, your credit score takes the biggest hit when it first hits your credit report, but its impact will lessen over time and eventually that account will disappear from your credit report due to federal laws that limit the amount of time it can impact you.

Reduce No of Applications:

Don't open accounts just to have a better credit mix – it probably won't raise your credit score. This approach could backfire and actually lower your credit scores. A hard inquiry will impact your credit score for a full year, though your score will start improving almost immediately after you apply. The hit is small (normally around 3 to 5 points) but if you’re on the edge of two credit score tiers or applying for lots of credit offers in a short time span, you can do a lot of damage.

Repair Your Credit Utilization Ratio:

If your credit card balances every month are more than 30% of your limits, your score is suffering, even if you’re paying off your balances in full every month by the payment due date. That’s because your statement balance is most likely what’s being reported to the credit bureaus. So, keep an eye on those balances, and consider pre-paying some of the balance if you know you’ll be above that 30% mark this month.

Like we said earlier, improving a poor credit score takes time, but it’ll be completely worth it. Constantly worrying about being approved for loans, mortgages and new credit cards is not something you want to be doing for the rest of your life. 

Following these tips will not only save you money, but also teach you the valuable skills necessary to maintain a good credit score in your future. If you have bad credit, don’t give up on credit entirely. Instead, be responsible and stay educated about your accounts and scores so you can successfully handle your own finances.

There are no shortcuts when it comes to getting out of problem. So, Be Cautious and Maintain Score.

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