If you’re attempting to get a loan for a house, a car or you just want to open up new credit cards, you’re going to have a difficult time getting approved if your credit score is really low.
When lenders look at you and see a high credit risk because of a low score, they will typically reject you for the loan or credit card of your choice.
Instead of sitting back and doing nothing, there are ways to boost your credit score effectively so that you finally qualify for the loans and credit card offerings that you want.
Don’t fall victim to the current credit system that isn’t working in your favor. Do something about it by using the four methods to boost your score that we’re about to share with you today.
1. Always Pay All of Your Bills on Time
This shouldn’t come as a surprise to anybody, but if you have to make regular payments for your car, your mortgage, your existing credit cards, and any other loans that you might have, it’s always best to make those payments on time, every time.
As a matter of fact, to prevent you ever accidentally paying these bills late, you’re better off sending them in 5 to 10 days early just to be on the safe side.
If you do pay your bills late, this is going to have a huge negative impact on your credit score.
Since you are obviously trying to raise it up to get better interest rates and qualify for better loans, not paying your bills on time is going to be counterproductive, to say the least, and it will hurt your chances over the long run.
2. Don’t Transfer Credit Card Debt, Pay It off Entirely
When you’re part of the revolving credit system, transferring your credit card debt from one card to another is still going to make your debt to credit ratio a lot higher.
To break free of this vicious cycle, take some time to work on paying down your credit card debt.
You can either work on paying off the credit cards with the highest interest rates, the highest balance, or you can implement the debt snowball system.
3. Pay More Than Your Minimum Payments
If you choose to only pay the minimum payment, the majority of that payment is going toward paying interest and it’s not going to put a major dent in your overall balance.
To begin bringing your balance down, and getting your debt to credit ratio in better standing, you need to start paying more than the minimum so that you can start chipping away at the balance instead of paying interest all the time.
By approaching credit card repayment this way, your debt to credit ratio will look much better, and this will also help raise your overall credit score because your credit picture will look much better to lenders this way.
So stop only paying the minimum.
Every month if possible, put an extra $10, $20, $25, or even $100 toward your balance so that you can begin knocking it down.
4. Keep a Close Eye on Your Credit Report through Credit Monitoring
Instead of getting caught off guard by unsuspecting problems on your credit report, it’s best to look into credit monitoring so that you can keep a close eye on your score and report at all times.
If you’re having a tough time picking the right credit monitoring service, you could always look at credit monitoring service reviews and check out some of the recommendations mentioned in those articles.
According to Credit Monitoring Services, credit monitoring service reviews experts, “The stress and aggravation resulting from identity and credit theft might be enormous. Lives can be ruined when identity thieves are successful in their nefarious tasks.”
Ultimately, by monitoring your report, you’ll never be surprised by anything negative showing up again.
If you use these four suggestions, you’ll have no trouble boosting your credit score in a matter of weeks or months. Also, you can follow these eight tips on how to improve your credit score by WalletHub.