Obtaining a good credit score comes with tons of benefits. You’ll be able to find more competitive interest rates on loans, credit cards, and mortgages. If you’ve been searching for ways to improve your credit score, then you’ve come to the right place.
Come dive in as we explore four unique ways to earn a good credit score!
Delete Credit Report Collections
If you have a missed payment on your account, it will show up as a negative mark to the credit bureaus. A collection on your credit report can put a dent in your score. You may be able to have this collection removed from your credit report, though it depends on your circumstances.
If the collection was not reported correctly, you may be able to dispute it with the credit bureaus. However, if the collection is legitimate, then the traditional removal process can take up to seven years.
One unique way to improve your credit score is by increasing your credit limit. Increasing your credit limit can improve your credit utilization ratio. By showing a lender that you’ve been a responsible cardholder, you can request a credit limit increase (normally every six months).
Your utilization ratio, which is your usage ratio on your available limit, accounts for about 35% of your overall FICO score. If your debt to credit ratio is below 30%, your scores will not be much affected.
Negotiate Lower Interest Rates
Did you know that you can get in touch with your credit card issuer to negotiate lower interest rates?
It’s really simple. All you need to do is get in contact with them and put in a request that your interest rate is lowered. You can tell them that you’ve been a loyal customer for a long time and you’ve consistently paid your bills on time. You may even want to let them know why you want to lower your interest rate.
With a lower interest rate, you can reduce the amount of interest that you have to pay over time. In turn, this will allow you to pay off your debts much faster.
Pay Your Low-Balance Accounts Off
If you have several accounts with balances on them, it can significantly impact your overall credit utilization ratio. You want to have fewer accounts with balances to improve your credit utilization ratio. Start by paying off low-balance accounts as fast as you can.
Final Thoughts – The Path to Better Credit
If you’ve been wanting to boost your credit score, we recommend getting in touch with us here at Boost Credit 101. Our team can give you the proper insights to help you optimize your credit report and get you the right tradelines for your particular situation.
Take a look at some of the other blogs on our site, as we cover a wide range of topics regarding tradelines, credit, and finances. We look forward to helping you take the next step towards your financial goal.