You can raise your credit score from 480 to 700 by following a few steps listed below in Alexandria KY.
Your credit report is your monetary entrance to getting the important things you desire in life. Your credit score is utilized for the following; when you purchase a. automobile, rent a car, rent an apartment, buy a house, college loans, purchase the. newest computers, electronics and it’s likewise used by insurance provider. when you require insurance. Credit scores vary from 300 to 850 and. any rating below 500 is thought about a greater risk to loan providers. Aiming to. maintain a score above 700 will enhance your possibilities of getting a loan. for larger purchases such as a car or a home. With a greater rating you. can improve interest rates and terms on your loans.
Obtain a 3 to 1 Credit Report
Go to Creditreport.com to get a free copy of your credit report. You want the 3 to 1 so that you can see the complete report from all 3 credit report agencies. Check your report for any inaccuracies such as someone else using your credit or anything that shouldn’t be there. This could be identity theft and should be reported immediately.
Make sure that each of your creditors have accurately reported your information. If you find there are mistakes, draft a letter and mail it to the credit report agency along with any proof to back up your dispute. You want to get this inaccurate information off your credit report as soon as possible.
Consolidate Credit Cards
Transfer balances on higher interest rate cards to ones that have a lower interest rate. This will lower your credit score by getting rid of too much debt.
Inspect Your Finances in Alexandria
Pull all your finances together. Look for somewhere you can squeeze say $100.00 additional each month. Take this money and apply it to the credit card with the highest interest rate each month until you get it paid off. Then, take that money and pay off the next highest interest rate credit card, and so on.
Avoid the Top End Limit of Credit Cards
Being maxed out on a credit card can lower your credit rating. A good benchmark is only holding 30% of the max amount available on the card. If you have a credit card with a balance of $1000.00, keep the amount on that card around $350.00 to improve your credit score.
Pay Your Bills on Time
Be sure that you consistently pay all your bills on time. Paying your bills on time is the one of the main elements that the credit bureaus use in calculating your credit score. (35% of your score is based on payment history)
Pay more than the minimum due on each credit card, only paying the minimum due is a sign you could fall behind on your payments and you may be a high risk.
Close Un-Used Credit Cards
Simply destroying your cards doesn’t work. You need to call the credit card company and request that they close your account so that it no longer shows on your credit report. This will help increase your credit score.
Refrain from Requesting More Credit
Each inquiry is reported to the credit agencies and multiple inquiries can negatively impact your rating. If there are no inquiries for a 2 year period, lenders are more willing to extend credit, confident that you will not overextend yourself and default on your payments.
Using these helpful tips can help you to increase your credit over time in Alexandria Kentucky .