So you’ve found out you have a 650 credit score and looking to bump that number up a bit. That’s a wise move as your credit rating is your lifeline when it comes to financing large purchases. This is because banks use the score to figure whether or not to approve your loan and how much they’re willing to send. In some other instances, it may be used as a deciding factor for the interest rates to be levied on the amount that you intend to borrow. Given the seriousness of this matter, you may want to come up with ways to increase your credit score for better terms.
As you might have well imagined, raising your 650 credit score is not an simple task that can be attained instantly. It takes time, dedication and effort. Nonetheless, it is an achievable goal that will see you live a much more fulfilling life that is free of worry and money troubles.
So, below are some tips on increasing your credit score. Check them out:
Eliminate credit card balances
If you have several credit cards with balances, you might want to start by paying them off. Having many credit cards in your possession only increases those balances that are a nuisance. Pay off those balances and stick to one or two cards that have a lower interest rate. You may not realize the benefits immediately, but this strategy can go a long way to boosting your credit score.
Keep records of your previous debt
It is often people’s preconceived notion that old debts need to be erased. Once you finish paying off your home or the car, deleting that record might seem to be a good idea at first. This is not the case. Let that record stay in your books. There is nothing wrong with a debt that you have already cleared. If anything, it will work better for you as it shows that you are faithful in debt repayment.
Pay your bills on time
Having a solid credit score to your name is beneficial if you’re anticipating a huge expense like a home or vehicle. Even if the purchases are tightening your financial situation, it’s much better for you to use your savings to pay off the bills than to have them accumulate. This way, your credit score won’t get damaged. What you need to know is that a small drop in your credit score could make you miss out on that dream house or car that you have always wanted.
Don’t hint at future money stress
If you want to maintain or improve your current credit score, do not do something that could potentially sink it. For example, you should not suddenly miss payments or pay less than you would normally do. Usually, such activities scare your credit card issuer but they’ll not necessarily dip your credit score. Just don’t hint at risk.
The tips on increasing your credit score as mentioned above are ways that have been tried and tested. While most of the techniques that have been mentioned here are easier said than done, the process only requires a little dedication and effort.
Tell your friends, family and the people around you that you are working to improve your credit score. Once they are aware, they will co-operate and adjust to your new spending habits. Keep in mind that you can achieve an excellent credit score all by yourself. However, if it becomes a challenge, feel free to seek the services of a counselor.