3 Super Simple Ways to Quickly Improve Your Credit Score.
If you’ve been denied a loan or a credit card, it probably has something to do with a number that credit companies use to determine if you are “credit worthy”.
This number is called your credit score, and it’s what creditors, like banks and credit card companies look at to determine if you’ll pay them back or not. If your credit score isn’t great, there are 3 Super Simple Ways to Quickly Improve Your Credit Score.
Banks and other lending companies get have to get this number from credit reporting agencies to give them information about your credit history from companies you’ve borrowed from in the past.
If you haven’t been able to pay your bills on time, it will lower your credit score, which isn’t good. By having a bad credit score or a low credit score, you lessen your chances of getting the best credit card and loan rates.
Many people don’t know that companies that they want to borrow from have access to this information.
However, you should know that this information acts as a kind of ‘security’ for whether you’re a person that they should lend their money to or not.
By using this simple three digit number, creditors will decide whether or not you get approved for the credit card or the loan you’re applying for. Sometimes, you can still get a loan or credit card if you have a low credit score, but that loan or credit card will have higher interest rates because you’ll be seen as being ‘too risky’ to lend money to.
For this reason, you should try to improve your credit score in order to gain access to the best loan and credit card rates possible. You should also realize that having a bad credit score will also mean that you’ll very likely have a difficult time accessing simple technology, like getting a phone line hooked up in your own home.
This is because more and more phone companies and other utility companies are now also taking a look at a person’s credit score to make sure if you will likely pay the monthly bills or not.
So, here are 3 Super Simple Ways to Quickly Improve Your Credit Score:
Ask for a credit report from the three major credit bureaus.
By getting a copy of your credit report, you can find out about your credit history and compare each report and determine if it contains errors that could be lowering your credit score.
For example, if you noticed that your credit report contains an unpaid debt but you’ve already paid it, you have to correct the error by sending a letter and the proof that you paid the debt in full.
Mistakes like this are more common than you might imagine, and they can drastically lower your credit score. By finding such mistakes and correcting them, you can raise your credit score in matter of thirty days. Credit bureaus are also responsible for correcting any mistakes in your credit report.
2. Pay down the debt you have.
The second of 3 Super Simple Ways to Quickly Improve Your Credit Score, is to pay down any debt that you already have.
If you have any credit card debt, you don’t have to pay all of it at once. All you have to do is pay down your credit card debt up to the point that you don’t have a balance that exceeds 50% of your credit limit. Do this on all of your credit cards, and you’ll see your credit score markedly improve in a matter of weeks.
3. Pay all your bills on time.
By doing this, the creditors will not report any negative things about your credit activities. Paying your bills on time can dramatically raise your credit score. This is also happens to be the quickest way to improve your credit score.
Having a low credit score can be discouraging, but it can easily be fixed. If you’re planning to make a major purchase in the future, like a house or a car, now’s the time to start the credit cleanup.
Don’t wait until you actually start shopping for that car or house. Use these 3 Super Simple Ways to Quickly Improve Your Credit Score to clean up your credit, and avoid disappointment later.