April 8, 2020 2 min to read
How to raise your credit score: 5 easy things to do today
Category : Finance
If you have a bad credit history or your credit score is lower than you’d want it to be, then there are ways that you could bring it back up.
However, it’s not possible to build an excellent score overnight and it does require work, but the results are possible once you know what to do.
The higher you build your score, the more likely you’ll be able to qualify for credit cards and loans at the most favorable terms, allowing you to save more money in the process.
The quickest way to build your credit score is to focus on creating a positive payment history and avoid making damaging credit mistakes.
Furthermore, if you just started building your credit, then it will be at least 6 months before you can get a score at all.
Here are some of the best tips on how to raise credit score:
1. Regularly Review Your Credit Report
Constantly checking your credit report is a good and necessary habit to get into. But it’s especially essential to ensure your biographical information is accurate and there haven’t been any signs of identity theft.
You may also find it rather surprising to learn that you don’t have just one credit score or even three for that matter. Rather, there are over hundreds (if not thousands) of credit scores already made available to you.
You might not be able to tell which credit score a lender will use in order to assess and grade your credit score, but you can have some aspect of control over your credit reports from which your score is based on.
Therefore, your score needs to be just as good as your report. But there may not even be a credit score if you haven’t even opened your first line of credit yet.
2. Make Sure You Pay On Time
Another way to increase credit score quickly is to ensure you pay your bills on time. Whenever lenders review your credit report and ask a credit score from you, they’ll want to know how you paid your bills reliably.
The reason why this is so is that the performance of your past payments serves as a good indicator of your performance in the future.
This is especially the case with both VantageScore and FICO credit scores. With FICO, your payment history accounts for 35% of your credit score.
Former credit expert of Equifax and FICO, John Ulzheimer recommends that we avoid not only late payments but also repossessions…
Continue reading the article and learn more about credit score on Life Is An Episode website.