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Credit Score

A credit score isn’t something that can happen overnight.

5 Effective and Proven Ways To Improve Your Credit Score

Simon Hopes Simon Hopes , 9/1/2017
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A credit score isn’t something that can happen overnight. If you need to improve your credit score, you will have to make steady and continuous steps. But do you know how can you do that? Read on to find out.

Below is a list of things that you can do to improve your credit score:

1. Watch your credit card utilization: One of the most important parts of your credit score is credit utilization. This accounts for 30% of a credit score. The best way to improve your credit score is, to limit your credit utilization to under 30%. If it goes any beyond that, it will affect your credit score negatively.

It is also recommended that you extend your credit card limit whenever possible and get many credit cards. If you do this, the ratio of your credit utilization to credit available will decrease and hence your credit score will increase. There are some credit repair companies which can guide you through these tricks and improve your credit score. is one of the best credit restoration companies.

2. Keep your old debts on the report: One mistake that many people make is, the minute they get their mortgage loan paid back, they call the lender to get it removed from their credit report. This is a bad idea because if you have paid your debt on time, this will reflect that you have a good credit history. This is a positive information on your credit report and it is good for you if it remains there.

3. Understand the impact of a loan application: Whenever you apply for a loan, there is a credit inquiry made which lowers your credit score. The credit scoring system takes this into consideration that you might need to make multiple applications for a single loan. For this reason, the dip in your score is only temporary. Some credit cards use scores that have the dip for 30 days, while others have it for 45 days. It is important that you apply for another loan only 45 to 50 days after your first application.

4. Make timely payments: Even if a bill of small amount remains unpaid by you, the bill might get in the hands of a collection agency and get listed with the credit bureau. This bill can be as small as a library books bill.

It is thus important to understand that each bill can make a huge impact on your credit score and thus every bill should be paid on time. You can never know when a small bill can make you pay high interest rates on your new loan. Your credit history accounts for 35% of your credit score and hence this is one are you should be concerned about the most.

5. Clear the collections: Each person is allowed to get his/her credit report at least once in a year from all three credit agencies for free. You must get your credit report and list out the spots that need attention. Clear out your dues with the collections agencies and make sure your payments are done. While it may take very long to get its negative impacts off from your credit score, it will surely benefit you in the future. Also, you can communicate with the collection agency to get this removed from your credit report if possible.

There are a few agencies that can help you improve your credit score. These agencies have to knowledge of how the credit score works and the ways to improve it. To find one such credit repair agency, you can visit this website. This can be really helpful.