A good credit score can make a difference in your ability to borrow money at the best rates or to buy something expensive such as a car. Al ow credit score can make it hard for you to get a cell phone, an insurance policy, or an apartment.
If there’s room for improvement in your credit score, it’s time to take action. Take these simple steps to help you improve your score:
Know Where Things Stand
The first thing to do is know exactly where things stand.Regularly check your credit reports and credit scores from the three main credit bureaus, which are Transunion, Experian, and Equifax.
You’re entitled to a free credit report each year fromAnnualCreditReport.com. Dovly’s credit monitoring and improvement services can also help you know where your credit stands so that you can start getting ahead financially.
Dispute Errors on Your Credit Report
Maybe you assume that the information on your credit report is accurate. You might be surprised to find out that many reports actually have errors or other inaccuracies weighing down credit scores..
You can dispute any errors you find on a credit report at no cost to you. Items that might be inaccurate include:
● Accounts that don’t belong to you
● Errors in account status, such as reporting a closed account as open
● Accounts reported as delinquent that are current
● Balance errors
File a dispute on any errors you find as soon as you notice them. Getting them corrected as soon as possible can help to raise your credit score.
Pay Bills on Time
If you’ve been a bit careless about paying bills on time,it’s time to turn things around. Keep track of due dates and set reminders in your phone to pay them when due. Some credit card companies send bill reminders through text or email. Another option is to set your bills up to be paid automatically each month through online banking.
Reduce Your Debt
Another factor that affects your credit score is known as credit utilization. On revolving accounts, this is the percentage of available credit that you’re using. Whenever possible, keep your credit utilization below 50%, 30%, or 10% (the lower the better).
Figure out how much you owe in total and make a plan to reduce your debt as much as possible. Pay attention to what rates you’re paying on each account, and work to pay back the accounts with the highest interest rates first.
Set Up a Variety of Accounts
It’s a good idea to have a mix of different types of accounts such as credit cards and personal loans. Having multiple types of credit and proving that you can handle them responsibly can help boost your credit score.
Did you know you can also improve your credit by reporting things you always pay, such as your rent and utilities? Your rent is one of your largest monthly expenses, but if you don’t attach your rent payments to your credit report, you miss out on getting the credit you deserve for making the payment every month. It takes just two minutes to add your rent to your credit report.
If this whole process sounds overwhelming or confusing, get in touch with Dovly. With a 92% success rate, we know what it takes to make your credit right: We do the work to remove unwanted errors from your credit history. With a new and improved score, you’ll be able to plan for the future milestones without the burden of a bad credit.