How to Successfully Improve Your Credit Score
Whatever information is on your credit report has an impact on your credit score. Your credit score plays a very important role when you’re applying for credit or seeking approval for loans. A poor credit score can mean higher interest rates for you or a rejection of your loan request, making it difficult for you to meet many of life’s needs.
If you’re interested in credit repair or want to know more about how to dispute credit report in Pontiac, Dentsville, and Blythewood in Columbia, SC, here are some tips on what you can do to improve your credit score.
Analyze your credit report with the 3 credit bureaus - Experian, Equifax, and TransUnion. You can get a free copy of your credit report form these 3 bureaus once a year as per the Fair Credit Reporting Act. You can even access your report on AnnualCreditReport.com, which is a government-mandated site. It’s possible for credit report errors to exist, so make sure you analyze your credit report carefully to identify errors. Disputing any errors is necessary to improve your credit score.
Once you do this, you need to identify which areas need change, whether it’s:
- Payment history
- Amount of debt
- Age of accounts
- Account mix
- History of credit applications
Stay on top of your late payments and continue to pay your bills on time. Set up reminders if you have to so that you won’t miss a payment. You can even ask a friend or a member of your family with a good credit score to add you as an authorized user on their account, which will improve your history.
Get in touch with your creditors and clear off any outstanding collections, with an agreement that they will get rid of the negative hit to your credit report if you make the repayment in full.
You can also open a secured credit card where you have to deposit money into a checking account to help secure the credit line being extended by the lender. This will prevent you from missing any payments and raise your credit score. You can also diversify your accounts to have a higher credit mix and maintain a 30% utilization rate to raise your credit score.
Once you successfully improve your credit score, you’ll have a higher purchasing power to afford that dream car you’ve always wanted. If you’re evaluating your options in Pontiac, Dentsville, and Blythewood check out JTs Kia in Columbia, SC, today.