A sagging credit score usually has a similar effect on your mental peace and ego. By the way, you are not alone in the world, fumbling in the dark with low credit scores. Approximately 14.25 % of the US population has credit scores ranging somewhere between 300 and 549. But guess what, this actually is great news. You want to know how?
FICO statistics reveal that around 1.4 million people have found ways to improve their credit scores from the previous year. Now that’s good news, isn’t it? The best part is that you too can use some of the amazing ways used by those 1.4 million people, to improve your credit score. Get ready to know how they did it.
Add a loan EMI to your Report
When you leave evidence on your credit reports that you are paying loan installments, you are actually displaying proof of your capability to take on a financial responsibility. This is by far the speediest way to improve your credit scores.
In case you do not have any loans as of now, maybe taking a small personal loan that allows you to make regular installments to pay it back will suffice.
Trim your balances
Credit scores are influenced a great deal by the balance amount that flashes in your previous month’s credit card statement. You need to find ways to reduce and trim down the outstanding balances each month.
You can also try to set up a reminder to pay the dues each month before the end of the due date. Try limiting the usage to just 10-30 % of the total credit available each month. Or you could try to convince the credit card company to send you a reminder when you overshoot 10-30 % of your credit limit for each month.
Pay off some balance
When you pay off some of the outstanding balances, like paying off a revolving credit card account can dramatically improve your credit scores. The idea behind this is that you will be able to show a wider gap between the available credit limit and the actual credit availed by you.
Just because you have an available credit for say $ 2000 each month, you should not avail all of it. Try and keep your usage within 10-30 % of the entire limit. When you pay off a revolving credit card account, you can actually manage to widen the gap considerably.
Get a new credit card
This one sounds counter-intuitive, but it works nevertheless. If you face a difficulty in obtaining a regular card you have the option of getting secured credit cards. As you maybe already aware secured credit cards extend only that much credit which corresponds to the amount of money you have deposited.
Depending upon your current credit score u can use either one or two of these four ways to improve your credit score.
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