Whether you’re looking to take a loan or purchase a new car or apply for a credit card, your credit score matters. Your financial services representative Tennessee will also tell you that you’ll need a high credit score for financial services companies to lend to you without much ado. A high credit score is also advantageous because you can avail of low-interest rates upon borrowing money.
However, to increase your credit score, you can follow some basic tips, as follows:
Order your credit report
Your credit report will tell you about your credit score and serves as a starting point before you go about increasing your credit score.
By accessing your credit report, you get to know about your history of financial transactions. Also, such reports contain details of your accounts and payments.
Depending on your country’s laws, you must order your credit reports via the relevant credit reporting agencies. Also, if you talk to the Tennessee credit management financial professionals, they will disclose that you can receive your credit reports once a year free of cost.
Pay your dues on time
If you consult your credit advisor Tennessee on how to increase your credit score, he will advise you to be consistent in paying your bills and before the given deadline if you want to raise your credit score within a short duration. Plus, make sure you avoid late payments, or your credit score will fall.
A good way to remind yourself to pay your bills on time is to note down the payment deadlines on your calendar or planner. Additionally, you can set up payment reminders online.
Another option is to enroll for auto-payments with your bank. Then, the payments are directly debited from your accounts as and when required.
Select your tenure suitably
Depending on whether you can pay low or high EMIs, you must choose your loan repayment tenure. Of course, your finance management TN consultant may recommend going with a longer duration, so you can pay your EMIs comfortably. Moreover, by doing so, you reduce your chances of defaulting on your EMIs.
However, if larger EMIs are affordable, then you may go ahead with a shorter loan repayment tenure too. In turn, you can clean your loans faster and save money on interest.
Contest the credit report errors
Your wealth management advisor Tennessee will suggest removing errors from your credit reports as another way of raising your credit score. So, if you find that your credit report is not reflecting the true picture of your financial history, you must dispute the credit report errors. You have to contact the stipulated credit reporting agency to raise and clear the disputes.
Maintain a healthy credit utilization ratio
Upon contacting any reputed credit management services on how to raise your credit score, they will suggest maintaining your credit card balances low. Yes, your credit score suffers from a high credit utilization ratio.
Also, although you clear your balances in full before the due date of every month, the balance amount reflects as outstanding in your credit report. This is because your creditor submits the information to the creditor every month before the given due date. Thus, the general recommendation is to pre-pay the outstanding balance before the due date. By doing so, the amount of credit available to you remains high, which is good news for your financial wellbeing.
Also read: Why are credit scores so important?
Consider opting for debt consolidation to benefit from low EMIs
Taking a low-interest personal loan from a reputed financial services company Tennessee via debt consolidation is a good way of converting your numerous debts into EMIs.
Nonetheless, consider this option only if you’re finding it difficult to make payments because of high-interest rates on your loans and credit cards. When you do so, you can choose your repayment duration as per your financial standing and repay the borrowed amount via lower EMIs.
As compared to your credit card, personal loans are advantageous because of the low interest rate factor. As such, the personal loan interest rates are half of your credit card interest charges.
Make more than one monthly payment in your billing cycle
If you’re paying only once in your billing cycle, then contemplate paying more times in a month if you can afford to. If you do so, you not only lower your debt faster but also your credit utilization ratio falls; these factors give your credit score a boost.
Clear the payments of credit cards having high balances first
Many people maintain several credit cards. Now, if you belong to this group, then you should first clear the balances of credit cards that have high balances. The top-ranking wealth management firms will also propose doing so, to lower your credit utilization ratio whilst increasing your credit score.
Invest in an emergency fund
With an emergency fund in a separate bank account, you will rely less on your credit cards during emergencies. With your savings, you will also need less credit and this can go a long way in lowering your credit utilization ratio score.
To build your emergency is fairly easy, though you need to prepare well beforehand.
Co-signing loans can be risky
In some cases, parents co-sign car loans or student loans for their children and grandchildren. If possible, do not co-sign any such loans; else your credit score takes a hit.
Appoint a credit repair company
Though repairing your credit score and boosting your credit score is easy, yet you can benefit by hiring the services of a credit repair company. The financial experts are well-versed with the functioning of credit bureaus. Additionally, they can help in identifying any errors in your credit reports and making the required changes.
Some wealth management companies can give references to efficient credit repair service professionals who can help in removing the erroneous details in your credit reports.
Consult the financial experts for boosting your credit score now!
On a concluding note, you must avoid having big balances because you’re then perceived to overuse your credit, as per the financial services industry experts. Now, this does not sit well for your credit score. So, keep your credit balances as low as possible for raising your credit score.
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