Your credit score is measure of how trustworthy you are to banks and lenders.
There are many perks of having a great credit score such as lower interest rates [meaning lower monthly payments], more approvals, and higher credit limits.
There are number of misunderstandings when it comes to what impacts your credit score. Below are 10 STEPS TO A PERFECT CREDIT SCORE.
1. Pay your bills on time
This is the LARGEST part of your credit score and the easiest to mess up. Ensure that you are not paying your bills more than 30 days late.
2. Don’t close old credit card accounts
Your credit score will actually decrease if you close a seasoned account on your credit report because it will lower the overall length of your credit history. That is a whopping 15% of your credit score that will take an immediate hit. If you feel like the card is too tempting, then cut it up! But do not close your account.
3. Become an Authorized User
Becoming an authorized user on someone else’s account is the most effective and efficient as it will save you TIME because it takes a very short amount of time for this account to report on your credit report. The account must have perfect payment history, and utilization under 30% in order to work. We can help you with this.
4. Get a Credit Sweep
Even accurate negative items can often be removed or negotiated away. If you have any negative items on your credit report, you should work through getting as much of them removed as possible with us. Do not attempt to do this by yourself.
5. Make sure you have at least 3 open AND positive tradelines
A tradeline is any type of account on your credit report (for example, a credit card, car note, mortgage, student loans, etc.). Lenders are looking to make sure you have at least 3 open, positive tradelines on your credit report. The tradelines should have perfect payment history, with utilization under 30%. The older the account, and higher the credit limits, the better.
6. Minimize your credit inquiries
Too many credit applications in a short period of time can result in denials. Only apply for credit when it makes sense to you. We have an inquiry removal service that can help remove certain pesky credit inquiries from your credit report.
7. Don’t co-sign for anyone, ever
Don’t offer or say yes to any of your family members, lover’s or kids request for co-signing on a car, apartment, credit card, etc. Life happens, and the situation can turn very ugly as I have seen many of times with my clients and family. that have big hearts.
8. Sign up for credit monitoring
Download an app on your phone so you can get notified right away of any changes to your credit report. You should be keeping an eye on this.
9. Don’t pay off old collections & think they will get removed
Simply paying a collection that is on your credit report will NOT remove your track record of poor payment history. Be mindful of this and any payments you make should be “paid in lieu of deletion.”
10. Keep your credit card debt under 30% for the maximum amount of credit score boost
This can seem unreasonable throughout the year, but if you have a big event planned such as purchasing a car or home, your credit should be looking right! Ensure your credit cards are under 30% for the big day.
Don’t know how to tackle your debt?
Start with the SMALLEST credit limit [credit] card, pay that to under 30%, and repeat through the rest of your accounts. This way you are maximizing the scoring algorithm as time and money permits for you.
Are you ready to take charge of your credit score and work with a phenomenal company that will EXPEDITE your path to credit success within weeks?
***We can help you. Call us right now 904-515-9688**
Written by Val Singles