Credit scores mean quite a lot in life. Creditors have their own criteria for establishing one’s financial worth and ability to pay up. To qualify for higher credit, loans, and mortgages, it’s important to keep up your credit score; it’s always best to maintain yours slightly above 720.
But in case you are still young with little credit history or for some reason your FICO score is below the 700 mark, and are wondering how to grow it, here’re eight simple but modest tricks.
- Check Your Credit Report
This should be your first step. Besides giving you a chance to see your credit score, the report will also let you in on the reason why it is low. And from it you’ll have rough idea what to do.
- Rectify Erroneous Information
From your credit report, you’ll be able to spot any errors if any. It is possible they are the reason behind your low FICo score. You can dispute such errors through any of the three credit bureaus.
- Negotiate For A Raise
Perhaps you had a good credit history until you stopped paying your bills on time when you lost your job. You can as well ask your creditor to erase your debt or default as long as you can pay.
What you can do is write a letter with a request to your creditor to eliminate the bad report and a commitment to pay the remaining balance. You can also seek a notice of “good will adjustment”.
- Check Your Credit Limits
Again, from your credit report, look up at your credit limits and ensure they are the most current. It shouldn’t seem you are maxing your card every month. Ensure any adjustments are indicated.
- Get a Credit Card
The essence of owning a credit card is to use it responsibly. Having more than one will certainly do your credit score some good. If you can’t get a customary credit card apply for a secured one.
You may have to give away some few hundred dollars the creditor can use as collateral. Secured cards usually have an allowance to extend credit provided you’ve been responsible for 6 months.
Other strategies include under-using your credit cards, processing your loans quickly, and paying your bills on time. You are likely to raise your score even faster if you become more responsible with your credit cards. For purposes of emphasis, nothing changes without the appropriate action