Your credit score is a number that represents your credit history and your ability to pay debt. A high score gives you access to better interest rates on loans and credit cards, while a low score can make it difficult to obtain credit or give you higher interest rates.
If you want to raise your credit score, there are a few things you can do:
1. Pay your debts on time
Being on time with payments is the most important factor in determining your credit score. If you have late payments, catch up as soon as possible. It is also important to pay your credit fees in full each month.
2. Keep a low balance on your credit cards
Credit companies want to see that you are not using too much of your available credit. Try to keep your balance below 30% of your credit limit.
3. Apply for credit only when you need it
Every time you apply for credit, an inquiry is made to your credit report. Hard inquiries can lower your credit score a bit. If you are thinking about applying for a loan or credit card, compare offers before applying.
4. Keep your older credit accounts open
The length of your credit history is also important to your credit score. The longer you have open your credit accounts, the better your score will be.
5. Check your credit report regularly
It’s important to review your credit report regularly for errors. If you find any errors, contact the credit bureau immediately.
Additional tips to raise your credit score:
- Pay your debts from highest to lowest.
- Consider getting a secured credit card.
- Get a co-signer for a loan.
- Request an increase to your credit limit.
Remember that raising your credit score takes time and effort. Don’t expect results overnight. Follow these tips and you will eventually see your score improve.
You might be interested: Are you having difficulty paying your mortgage or other expenses?
Do you need help raising your credit score? At Colamerica we advise you. Call us to schedule an appointment at 1-800-320-2272! We will assign you to a loan officer to provide you with more information according to your case. No cost, no obligation! or you can communicate by WhatsApp by clicking here.
