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Improve Your Credit Score – Tips and Tricks to Fix Poor Credit & Raise Your FICO Score

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Bad credit can be improved. It takes time to improve your credit score, but it’s possible. Your credit score and its history are pivotal in approving your credit. One thing you must keep in mind is that the less debt you have, the better your credit rating becomes. Listed below are three steps to raise your credit score.

If you follow the three steps listed below, you will avoid a poor credit score, take control of your spending habits, and pay your bills on time. You will then begin to see the positive results of maintaining good credit. It will lead you to a good credit score and improve your ratings. Let’s discuss them:

  • Pay Bills On Time
  • Eliminate Credit Balances
  • Use Credit Balance Transfer Credit Cards

Pay Your Bills on Time

If you are planning to make a big purchase like a car, home, or take a family vacation- make sure you pay these bills on time. The best way to keep a good credit score is to simply keep your bills paid on time- or it will damage your credit. You can help this situation, by keeping a savings account for emergencies. You want to save money, and stay at your current address for a long time, for better credit. Owning a home also helps improve your credit score, because this is considered a major purchase towards maintaining good credit.

Eliminate Credit Balances

The best strategy for improving your credit score is to eliminate unwanted balances. For example, you may have too many small balances from a number of credit cards, that you can eliminate. The solution to helping raise your credit score is to get rid of these balances so that you can limit bills and build credit. You can eliminate many of these balances, by selecting one or two credit cards, in order to use for everything. If you can’t afford to pay off these balances, you can always use a balance transfer credit card.

Use Credit Balance Transfer Credit Cards

Balance transfer credit cards can reduce the interest, that you pay on your credit card debt. It’s a way to save and cover your monthly payment or finance charges. It’s also a way to consolidate your credit card debt into one low-rate card. Of course, there are pros and cons involved with the use of this type of card. The truth is that each time that a credit bureau receives an inquiry for a new credit card, your score goes down. This includes store accounts, that is why is recommended to have only a few credit cards. Many individuals get excited over the introductory advantages like 0% on purchases, the savings, and the regular APR and annual fee amounts, but the low rate fees, may not offer an extension and the 0% APR will not last forever.

How to Improve Credit Score

It could take six months to a year depending on what your current credit score and current financial situation are to improve your credit score. Credit reports are utilized by banks, and credit card issues or car dealerships can help determine whether or not, you are risk or not. When you are looking to purchase a new home, car, are a potential employer, or apply for an apartment- your credit score can help determine your past credit history. You must also keep in mind that there are three national credit bureaus- Experian, Equifax, and Transunion. These agencies report- types of credit, new, length of credit history, amounts owed, and payment history. You should study and monitor your credit report, to avoid credit score errors. You should also contact the lender if you have experienced misfortune or you have lost your job. Explain your situation and agree on a payment plan that you can afford, to avoid credit pitfalls. You may need some sort of advice to help you understand how to improve your credit or get out of debt- by contacting a credit counseling agency. You should beware of for-profit agencies, who charge you to forgive the debt.

Maintaining Good Credit

Maintaining a good credit score requires patience and the mindset to avoid tempting purchases. You should try to pay the minimum on amounts of credit due, and keep track of your bills by the use of a calendar or budget app, to send you alerts when payments are due. If you pay off your credit cards in full, try to pay them off two days, before the billing cycle closes. This will show a small amount, which gets reported to credit score agencies. This also increases your credit score, which is always helpful. Being aggressive with keeping up with your credit score is necessary, to improve the rating. It helps with sustaining good credit, and it helps improve the ratings, as you maintain it’s standings. Stability also helps your credit score.