4 Ways to Boost Credit Scores
If you need to boost your credit score, it won’t happen overnight in most cases but paying down revolving debt (credit card) to under 30% could boost your score in as little as 30 days. But with out help....you can start the process.
Credit scores take into account years of past behavior you can find on your credit report, and not just your present actions.
Below are some steps you can take now to start on the path to better credit.
Watch those credit card balances
Leave old debt on your report.
Pay bills on time
Stay ahead of your credit report
1)Watch those credit card balances
One major factor in your credit score is how much revolving credit you have versus how much you’re actually using. The smaller that percentage is, the better it is for your credit rating.
The optimum: 30 percent or lower.
To boost your score, “pay down your balances, and keep those balances low,”
2) Leave old debt on your report.
Some people erroneously believe that old debt on their credit report is bad.
The minute they get their home or car paid off, they’re on the phone trying to get it removed from their credit report.
Negative items are bad for your credit score, and most of them will disappear from your report after seven years. However, “arguing to get old accounts off your credit report just because they’re paid is a bad idea,” — debt that you’ve handled well and paid as agreed — is good for your credit. The longer your history of good debt is, the better it is for your score.
One of the ways to improve your credit score: Leave old debt and good accounts on as long as possible. This is also a good reason not to close old accounts where you’ve had a solid repayment record.
Trying to get rid of old good debt “is like making straight A’s in high school and trying to expunge the record 20 years later. “You never want that stuff to come off your history.”
3)Pay bills on time
Credit card companies and lenders report late payments once you are 30 days past due. A high credit score can decrease as much as 100 points for one late payment. If your credit score is low, the decrease in points will not be as much; but nevertheless, any points your credit score suffers due to late payments is significant. If you are late paying begin paying on time immediately and your credit score will recover within several months.
4)Stay ahead of your credit report
You are entitled to a free credit report from each consumer reporting agency once every 12 months by ordering at: annualcreditreport.com. Review your credit report for accuracy, making sure there are no mistakes. Big credit score killers are late payments, collection accounts, charge-offs, bankruptcies, judgments and under-reported credit limits.
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Jennifer No, RMLO
25250 NW Fwy Ste 260
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C&T Mortgage Inc.
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