8 Proven Tricks on How to Improve Your Credit Score
For many families, a high credit score is the difference between living in a great house or an apartment. And with each passing day, it becomes more and more important to make sure that you have the highest possible score! The Hacking of Life has put together some tips and tricks on how to improve your credit score.
1. Should I Keep Old Bank Accounts Open
Keep your old accounts open. The history of good credit is important because it affects how long you’ve had an account, which shows that you have maintained a good credit score for years and can use more credits at once. This lowers the available credit you are using, which increases your score by showing that you don’t borrow as much money from other sources like banks or other lenders.
2. Is It Good To Set-up Automatic Payments
There are many reasons why you should never pay late. One of them is that it can help improve your credit score, which will then save you money in the future.
The auto-payment option is a great way to improve your credit score. First, go to the website and set up an account. Once you do that, it will ask for permission to take money from your bank account when needed. It can be set up so that you don’t even have to remember about it because it’s deducted automatically each month!
3. Is it bad to pay your credit card bill early
The Debt Utilization Ratio is a measure of how much debt you have to the size of your credit limit. If your ratio is low, it may increase your credit score. But a good idea would be to pay off all outstanding balances before each due date in order to maintain the lowest possible ratio.
The Credit Card company will charge an interest fee if you carry over any balance from one month’s payment period into next month’s, and this increases the amount that needs to be paid back with interest. To make sure that doesn’t happen, try paying off as many purchases as quickly as possible and keep an eye on when payments are made- for example, by being aware of transactions through checking account statements or online banking sites like Simplifi.
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4. How do I get a goodwill request for deletion
You may be able to get a good-will deletion from the credit reporting agencies if you have been a long-standing client with few issues. You just need to make sure that your payments were always on time and in full, that any unpaid bills are paid, and that late fees or other fees are not charged for too many times.
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5. Avoid Pre-approved offers
Did you know that pre-approved offers in the mail may require a credit check and multiple checks may lower your score? Don’t create too many accounts as you are more likely to make mistakes and forget payment dates.
6. What to do with utilities when moving
There are many things to consider when moving. One of the most important is your credit score and how you handle it during a move. Things like opening up new utilities, getting a new cell phone plan, or even renting a car can affect your credit score negatively.
The best thing to do is get rid of old services that we don’t want before making any new ones, but if we absolutely have to open up something new then be sure not to transfer the service into our name- it’s better for us in the long run!
7. Avoid online quote comparisons
Every time you ask for a quote online, there is the risk of having your credit checked. These checks adversely affect your score and leave it lower than desired.
Narrow down what loans or insurance would be most beneficial to find before requesting quotes from so many websites at once which will have an even more negative impact on your credit rating while also taking up valuable time that could be spent in other ways like finding out about mortgage rates.
8. How to Establish Long-Term Credit
Don’t switch to another credit card provider because they promised cheaper rates over a period. Stick with your previous provider.
Positive, long-term relationships with lenders increase credit scores.
You may feel the urge to take the lower credit card offer from another company to move balances, but are you willing to do that at the expense of your score?
Conclusion
You can employ many strategies to raise your credit score, but careful planning is the best aspect of it all. We would love to know what you think. Leave us a comment and tell us ways you have improved your credit score.
Related:
Simplifi by Quicken, named the Best Budgeting App & Tool by the New York Times’ Wirecutter!
Stay on top of your money in less than 5 minutes per week!
Start your free 30-day trial today!
