How to Fix your Credit Score – Easy Way to Improve Your Credit Score
You can fix your credit score by checking if there is an error in your credit history. To maintain a good credit history follow the guideline given below. To rebuild your credit score or to fix your credit score need little more time so for this process, you need some patience. You can’t improve your credit score by using short cuts as it may be harmful to your credit report. Therefore, we suggest you don’t run after quick efforts to improve it as it is not beneficial.
If you will manage your credit history responsibly then you can rebuild your credit score easily. To improve your credit score you need to follow some important steps, which will help you to repair your credit history. Go through the steps given below.
Steps to Improve Your Credit Scores
Check your credit score online to improve your credit history. When you check your score on a regular basis then you can easily get an idea that which factors are affecting your credit score badly. By knowing such factors you can start making changes to fix your credit score. The changes about which your creditor gives you a report, you need to take out some time to make it so that it will reflect your credit score in a positive manner.
Such factors play a vital role other than payment history. To improve your credit score some factors are important. The payment history is reflected by the credit score over time by focusing on recent information. Go through the points given below it will help you to fix your credit score.
Pay Your Bills on Time
The lenders view your credit report and they request to check your credit score their focus is to know that how responsibly you make your bill payments. The reason for this is usually your past performance portrays your future performance.
By making, your payments on time every month you can easily leave a positive effect on this credit-scoring factor. On the other hand, if you will make your payments late and don’t accept the points on which you are agreed to pay then this will leave a bad impact on your credit scores.
You have to make your bill payments on time that not just include your loans like student loans or auto loans and credit card bill. It also includes all your phone bills, rent, utilities, and others. You can also use the features like automatic payments or reminders so that it may help you to make your payments on time each month.
If you are late in making your payment in any circumstances, try to make them pay as soon as possible to bring them current. This is because all your missed and late payments also leave negative information on your credit report for 7 years. Although the effect on your credit score is reduced with time. The older late payments affect less as compare to the recent ones.
Get Credit for Making Utility and Cell Phone Payments on Time
There is a method, which may help you to fix your credit score by making your cell phone and utilities bill payment on time by using a new free product known as Experian Boost.
By using this new product, it will help the consumer to connect Experian with their bank accounts to know the history of telecom and utility payment. Once the consumer corroborates and confirms that, they want it to be added in their credit file of Experian than soon they will receive an updated FICO ® Score.
Make an account on Experian at experian.com/boost to get a free membership so that you can get a free credit report and FICO ® Score instantly.
Pay off Debt and Keep Balances Low on Credit Cards and Other Revolving Credit
One of the most important thing in credit score calculations is the utilization ratio. You can calculate it by adding all the balances of your credit card and then divide the result with your total credit limit. To clean up is much easier than the payment history but for this, you need to follow the tips given below:
- Don’t keep a high balance on your credit cards and other revolving credit: If your debt will be high then it will leave a bad effect on your credit score.
- Pay off debt rather than moving it around: One of the most important step to improve your credit score is to pay off all the debt of your credit card. By having, less open accounts with the same amount may reduce your credit score. Make a payment plan first with which you can put your paid budget to the increasing interest cards and maintain the other minimum payment on your other accounts.
- Use all your credit cards to improve your credit scores.
- Don’t unblock other credit cards which are not required to increase your credit score: By using this technique you are destroying your credit score actually.
Apply for and Open New Credit Accounts Only as Needed
If you think that by opening a new account you can have a good credit mix than it will probably not.
From unnecessary credit, you can harm your credit in different ways that will lead to create inquiries regarding your credit reports and force you to spend money and accumulate debt.
Don’t Apply for Too Much New Credit, Resulting in Multiple Inquiries
By opening, a new credit card may help you to increase your credit limit but in this way, you can put your credit report on tough inquiry. Too many inquiries will leave a bad impact on your credit score. It will remain on your credit report for two years and will fade over time.
Don’t Close Unused Credit Cards
Use all your credit cards if they are not charging you any annual fees further; this is a good technique indeed if you will close your account then it will increase your credit utilization ratio. By having, less open account with the same amount may reduce your credit score.
Dispute Any Inaccuracies on Your Credit Reports
The three major reporting bureaus that include Equifax, Transunion and Experian check all your credit reports to see if there is any inaccuracy. If there is any incorrect information in your credit report then this will reduce your credit score.
Check that all the account mentioned on the reports are correct. If you find any error then make it correct right away.
How Long Does It Take to Rebuild a Credit Score?
If any negative information is mentioned on your credit report that includes late payments, too many inquiries, public record item then you should make your bill payments and wait. You need time to fix your credit score, as you can’t improve it quickly.
The time to fix your credit depends on the reason for the negative change. Mostly the negative changes are due to the negative inquiries on your credit report that include delinquency or the collected amount. This two main element will affect your credit score until they reach to a maximum position.
- 7 years is the time period for delinquencies
- Mostly the time duration for the public record, that remain on your credit report is 7 years.
- 10 years is the time for some bankruptcies.
- For two years, inquiries remain on your credit report.
To fix your credit card or rebuilding it is a time taking process, you can’t go for any shortcut. Check out your FICO Score through Experian to start improving your credit and know which factor is affecting your credit scores.
Establishing or Building Your Credit Scores
If you are not having a credit score due to little history with credit then you must have a thin credit file that indicates that you have few credit accounts that are mentioned on your credit reports that may be one to four. Normally the meaning of thin-file is that there is no such information available in your credit history due to which lender is unable to calculate your credit score.
There are some techniques by which you can increase your thin credit file that include you can apply for a secured card, become an authorized user or can take a loan of credit builder.
How Changes Affect Scores
One of the most trending questions that arise in most people mind is what kind of action can affect your credit score. For example, can you improve your credit score by closing your two revolving accounts? This question is easy to answer, as there are many factors, which imply on this situation.
- The credit score is based on the details, which are available on the credit report of an individual.
- If there will be any change in the credit report then this will directly affect the credit score of an individual.
If you will close the two account then it will not only lower your open revolving accounts but also reduce your total amount of available credit. Which will make the utilization rate higher. With one change, it leaves a negative impact on your credit report.
What You Might Not Know About Credit Scores
Credit scores are based on the complex calculations, by knowing the working of credit reports in detail you can take control of your own credit. To know the additional factors of credit scoring it is important for you to know some other factors as well about the credit reports. These components play a vital role:
Any negative information available on your credit report will lower your credit scores. This information will remain on your credit report for some time. 7 years is the time period for delinquencies. Mostly the time duration for a public record, that remain on your credit report is 7 years. 10 years is the time for some bankruptcies. For two years, inquiries remain on your credit report. One a good thing is that this will vanish after the given period. You should focus on the things that can give a positive result like making bill payments on time.
To build your credit card history you don’t need to have a credit card balance on a monthly basis. To influence your credit report with a positive effect you can pay all your bills on time every month.
If you fail to repay the debt that you have promised then it will leave a negative impact on your credit score.
If you have a good credit score then it may help you to open doors for you. You can get benefit in every mean like you can be qualified for the best interest rates and charges when you need to borrow money and sometimes you can get the benefits which you have never dreamed of. In this way, the property owners will consider your credit score whenever you will apply for a rent or telecom companies before they will lease your upcoming smartphone.
To ensure whether your credit scores is going good you should consider how important credit score is for being financially stable. Check your credit report and credit scores on a regular basis it is the first step with which you can fix your credit score. When you will check your credit score through Experian then you will come across the factors, which are affecting your credit score. Make these factors center of attention to fix your credit score.