4 Credit Card Tips to Improve your Credit Score
BY NDIDI IHIM 1 JUL ‘19
Maintaining a good credit score can be a helpful method to get big purchases in the future such as a house, car, college, an apartment, and even stating a business. However, people who do not have a good to excellent credit score may still qualify to get those things but with a higher interest rate and may be a flat out denial. This article will illustrate ways you can improve your credit score on your own from now on. Here are four most commonly used methods:
1. CHECK YOUR OWN CREDIT REPORT AT LEAST ONCE A YEAR FOR MISTAKES.
Did you know, that according to the Federal Trade Commission, one in five Americans have mere surface errors in their credit report that makes them appear riskier to lenders than they really are? 79% of credit reports contain errors. Common mistakes can be anywhere from their names, date of birth, social security number, address, and employment. If you have been a victim of identity theft, you definitely want to keep an eye on things. Enlist the services of a monitoring service. You can get a free yearly annual credit report and look thoroughly through it or get the help of a credit professional to help.
2. DO NOT MAX OUT YOUR CREDIT CARDS.
A good rule of thumb to remember is stay under 25% utilization at the most. So if you have $1000 limit on your credit card, you should not spend or have a balance more than $250 on it at any given time. If you follow this rule for all your credit cards, you will see a tremendous improvement in your credit score of course relative to other things on your report.
3. KEEP CREDIT CARD AND BILL DUE DATES ON THE CALENDAR TO PREVENT MISSED PAYMENTS.
If there is any habit you want to adopt daily, it will be this one. First, take time to write down all your due dates for both credit cards and bills. Next write them on your calendars wherever you have them, whether it be digital like your phone, computer, tablets, or paper like journal, wall calendars, and table calendars. A little hint though is to write the due date a day or two before the actual due date just in case you forget to look at your calendar or you postponed it for that day.
4. BARGAIN FOR LOWER RATES WITH CREDITORS TO REDUCE MONTHLY PAYMENT DEBTS.
Do not let fear keep you from picking up the phone and speaking with these creditors. Once you see those interest rates are creeping up, take time to get on the phone and ask nicely and politely for the interest rates to be reduced. Shoot for 9 – 15% and they might meet
you in the middle. You will save a lot of extra money reducing your rates because this is how the creditors make their money.
If you need help with errors on your credit report, Avim Systems, Inc may be able to help you. Contact us today for a free credit consultation to see how we may be of assistance to you.