You must have come across many such articles that will tell you how you must raise your credit score and work upon it. However, it is always easier to start off with something that you can follow easily. And the two main measures that you can take to achieve the same include being regular with your bill payments and most importantly using your credit or plastic cards wisely.
Remember, if you have a good credit score, your chances of getting better deals and terms and conditions on any financial product are also enhanced.
Let us delve deeper into the topic and explore a few more options that can help you to attain your financial objectives and goals.
Steps for improving your financial report card- Credit Report
Following these rules can help you with your credit score. These are things that boost your credit score
Track your credit report
As you know you are eligible to receive a credit report from the three reporting agencies and requesting for one will in no way impact your score adversely. Read through the pages and figures and if you find there are discrepancies, report the same to the agency promptly. It might so happen that particular information is not updated due to which the report has erroneous input that is adversely affecting your credit score. So, act fast.
Be in touch with the creditors
If you find that you are likely to miss out on a payment deadline, report the same to the creditors immediately. Instead of waiting for your financial situation to improve, if you seek assistance from the lenders and set up a repayment plan according to your prevailing financial situation, it will pay off in the long run and at the same time you can prevent your credit score from getting tarnished due to non-payment.
Pay-off your bills well in advance
If your bill payment cycle is once a month and if you have some extra cash at your disposal try to pay off the amount twice or three times in one month. By doing so, you will be able to reduce the debt you are carrying either on the credit card or any loan account the payment of which is underway. If the creditor sees that you are regular with the payments, it will reflect in your credit report, which will eventually improve your credit score.
Charged-off debt accounts
Many times, your debt might be treated as “charged off”. This simply means that the lenders will no longer expect any repayments on the loan from you. And if you happen to make payments for such charged off accounts, the debt account is usually “reactivated”. And such instances reduce your credit score remarkably. However, it is best to find out whether an account is charged off or not before you can start making repayments again.
Debt consolidation plans work
If you are knee deep in debt and your repayments seem to go haywire, you can opt for a debt consolidation plan. Although, opting for the plan will reduce your credit score further, but this is just a temporary drop. The moment you become regular with your payments again, your credit score starts to look up again paving way for improving the same.
Debt accounts diversified
If you have different types of loan accounts, let us say auto loans, credit card debts, mortgage, or student loans and if you take out another loan, it impacts your credit report. Even if you have diversified accounts and if you are able to make payments on a regular basis, it helps your credit score to improve.
There are no quick fixes when it comes to reducing debt or improving your credit score. It requires a lot of patience, perseverance, and a positive approach towards your financial goals and objectives.