Increase a low credit score it can be a long and difficult process. Once you get that number in a satisfactory range, you deserve to be proud of all the work you needed; but be sure to worry about how to do it go up the score of what you start to worry about how to do it keep that. That’s what you can do with this high score now that you already have it, while also making sure keep high.
How To Maintain Your Credit Score
Before you start considering everything you can do now that your credit score is green, you should practice maintenance up there. You put a lot of effort into it here and the one-time payments you made or the cards you paid for will continue to reflect the score, but it can still go back.
For starters, never forget one payment or line of credit, even if one line has one interest rate better than the other. Treat them all equally, pay them all on time and don’t lower your guard. Keep old lines open, as the length of your credit history is about 10% of your overall score. It can be tempting to get rid of all your credit cards to reduce the likelihood of overuse, but it’s best to keep them and practice them sparingly.
That said, having too open lines of credit are also not good for your score; so check out some of your cards. Ask your bank about a balance transfer card; once your score is good, it shouldn’t be as hard to get one as it would have been when your score was lower. See? You already have new options. Have this as a good sign that all your work has been worthwhile here (and a reminder that slipping can’t be allowed).
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The most basic advice is this: don’t live beyond your means. Credit cards do not contain magic money; they just represent money you haven’t spent yet.
What you need to know about your credit score
Even if your score is already high, you can still learn a thing or two about how this mysterious metric works.
“Educate yourself”, finance specialist B. Hernandez de BPH Ventures dit. “For example, there are three credit bureaus: Equifax, TransUnion and Experian. They are private entities that use your public and private data to obtain a score that assesses your ability to repay the debt. Credit companies, such as banks and credit card companies, use this to find out how much you can borrow and how much interest they can charge you. Scores can range from 300 to 850. Depending on the lender you consider to have credit, below 600 is not great, while above 750 is considered excellent. Most Americans are between 600 and 700. ”
Staying aware of how your score works and fluctuates is key to maintaining and using it to its full potential. When you receive your credit report, always review it carefully if there are any errors tin to pass. Knowing exactly what your report says, and generating a little hell with customer service when it says something wrong, will help keep it in a solid range.
“You can call or write letters to the offices and ask them to remove inaccurate information,” Hernandez said. “Inconsistencies are important because lenders will penalize you with denials, additional verification steps, or higher fees because of inaccurate information. If they can’t prove the wrong items are accurate, they have 30 days to remove them. It’s the law ”.
How to control your credit
As long as you’re alert to scams, it’s worth considering what types of options you have to increase and maintain your score beyond checking it out for yourself. Some credit repair companies have more reputation than others, so look for someone who can help you with exactly all those controversies you are planning or acknowledge what you need to discuss before doing so.
Once the score got to where it needed to be, Hernandez said, “Sign up for a credit check service. Free basic plans are for companies like Credit Karma, which is solid but limited, as it only shows two of the three reporting offices: Equifax and TransUnion. Most banks also have their own calculation of your credit score, but it is usually best to get your reports directly from the same branches. I use IDnotify to get the reports. They show the three reports side by side, making inaccuracies easy to spot. They also tell you when your credit has been earned, so it’s a good watchdog for possible identity theft. This option costs about $ 21 a month, but it’s worth its weight in gold because it shows everything on your report exactly as shown monthly. “
Clearly, whether it’s paying off your credit card or buying a security service, you have to spend money to make money. But once you do ….
How to take advantage of good credit
What did you have in mind when you increased your credit score? Did you want a new car, a house, or just prevent phone calls from reminding you that you have to make the payment? Whatever it is, you can now move safely, but carefully, in the direction of your dreams.
“It’s time to take advantage of good credit,” Hernandez said. “Ways to do this include refinancing credit cards or high interest rate loan balances. A good rule of thumb is to eliminate toxic debts, or more than 10%. Another way to do this is to use a mortgage to buy a home, which is generally appreciated in value over time. In general, use your good loan status to get your financing as cheap as possible. “
Remember everything you learned during this credit creation journey and get some of these benefits, of course, responsibly.