Credit scores can be a pain especially when you are faced with loans and debts from every corner staring at you looking to be paid with very little income from your job. You may end up having very bad days when your total income is only enough to pay up your loans and probably not enough to sustain you until your next payment becomes due. Sadly, this is an issue that many people face on a daily basis and may not even know how to go about it or where to start from and try to start making things easier without damaging their credit scores.
One fact is this; you are definitely going to damage your credit score if you default or repay your loans late. And you definitely don’t want that happening. So, here are some five crucial tricks and tips you can use to improve your credit score throughout this year.
1. Apply for new credit
Your debt compared with your credit limits or credit utilization ratio usually accounts for 30% of your total score. Which means you will want to have a healthy one of 30% or even less. You can also ask your current lender if it’s possible to get a limit increase or even open another card which you will rarely use. www.lendgreen.com credit experts, explain that your starting point also greatly determines how much you can actually improve you overall credit score.
2. Add positive info to your credit report
Make efforts to look for accounts with positive information or in good standing that are not listed in your credit report, explains April Lewis-Parks of education for Consolidated Credits. You can even use your phone contracts that have a good payment history which can help to significantly boost your credit history and score as well, adds April.
And the same can also go for the internet, utility, and cable providers. These providers aren’t obliged to report any of your payment records and history but still, it can’t hurt to ask.
3. Shop for new loans within short periods
This step won’t necessarily boost your overall score. It can help protect your current score though. Try shopping for a loan within a span of between 14 to 45 days. Doing this can help protect your score from being dinged as there is usually an exception whenever you do loan shopping.
4. Pay your credit cards at least twice a month
Don’t be duped that paying your cards off every month will lead to $0 balances when it comes to your credit report. But rather, you need to know that your report will only reflect your balance on the day that your lender actually reports it. This means that even a temporary high balance can take you back a long way with your credit score as it will result poor utilization ratios. Try and see if you can pay your bills at least twice a month to keep the balances down.
5. Sweet-talk your lender
Sometimes negotiating with your lender or collection agencies can help you a great deal and even soften the blow of any negative item that shows on your credit report, explains April. Even though these bureaus aren’t allowed to interfere with accurate records, they can still help with “good will adjustments” to ease the blow on your credit score.