Brian C Jensen shares insights about the relevance of having a wellness regime during the pandemic phase 
Teresa A. Severance of Deptford/Gloucester City, Past Sheriff and Holt Employee, GHS Alum Class of 74

Credit Score Goals! 5 Ways To Improve Your Credit Score 

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What are your major plans for this year? Maybe you plan to purchase a new house,  or perhaps you want a massive house renovation this year. Maybe you are also planning to apply for an auto loan, or you want to realize that long-time dream of yours to start up a new business that requires a considerable amount of cash.  Your credit score has a significant impact on whatever major plans you have for this year.

Your credit score matters a lot in all purchases you make and even your major financial decisions. Those entities that loan you money would always take a good look at your credit score. These entities would always want to check how risky it is to grant you loans by checking your credit score. 

Whether or not you have a good history of paying your debts, it is not yet too late to achieve your credit score goals by knowing and applying these five ways to improve your credit score.

Pay Your Debt Strategically

A complete and sound sleep is right for your health as this can improve your focus, boosts your mood, and decreases the risk of cardiovascular diseases. Unfortunately, overthinking your debt can interfere with your goodnight’s sleep, which can impair your health.  Thus, in paying your debt, you need to develop a  strategy to avoid sleep deprivation and increase your credit score. 

The efficient strategies in paying your debt include paying the most expensive debt first or starting with the higher balance card, which will result in a lower card ratio. Also, as part of your strategic debt payment, you may pay more than the minimum balance on your credit card. If you pay more than the minimum credit card balance, you are slowly but surely paying off your debt.

Paying more than the minimum will send a clear message to the entities that grant loans that you are indeed capable of producing and that you are committed to doing ways to improve your credit score. 

Pay your Bills on Time

Bills are part of an individual’s life. Bills do not refer only to credit card bills or loans but also include utilities, rent, and phone bills. Unfortunately, people tend to neglect these utility bills or phone bills, which they frequently prioritize less. However, many people are unaware that these kinds of bills can also surprisingly significantly impact your credit scores. 

Paying your bills promptly will show lenders that you are not taking your debts for granted and that you are committed to paying them. Prompt payment of bills can positively affect your credit scores, which would reveal a lot about your character as a debtor. 

On the other hand, a late payment will result in late fees and financial penalties, and a low credit score. To avoid the negative impact on your credit score and to know more about the helpful ways of improving your credit score, you may visit Crediful to give you the best advice and tips about credit scores.  

Monitor Your Credit Reports

Assertiveness helps you communicate your ideas or oppositions to a specific circumstance or situation, especially in monitoring your credit reports.  A close monitor of your credit reports will help you see inaccuracies in them clearly and immediately. When you notice inaccuracies, you should assert your disputes at your earliest reasonable time. 

If you miss spotting your credit report inaccuracies, chances are your credit scores will lower down too, which would influence your lenders to deny your loan application. Hence, to avoid great damage, such as a denial of your loan application, you have to monitor and verify information about your credit reports regularly.

Keep Your Credit Card Balances Low

One of the critical numbers in calculating a credit score is your credit utilization ratio. To figure out the ratio of your credit utilization, you just need to add all your balances and divide that by the total of your credit limit. One of the signs of a good credit score is a low credit utilization ratio. The lower your credit utilization ratio is, the more likely your lender would grant your loan application.

In every loan application, lenders would always check your credit utilization ratio. If lenders see a low ratio, they will get the impression that you are reliable in managing your credit and have not yet maxed out your credit cards.  

 

Keep Unused Credit Cards Open

One of the effective strategies in increasing your credit score is to keep your unused credit cards open. Closing unused credit cards may result in a high credit utilization ratio, which will lower your credit scores. As long as your unused credit cards’ annual fees do not hurt your pocket, it is best to keep them open. 

Takeaway

Your credit score affects a lot of aspects of your life. Your credit score will play a significant factor in determining your capacity to live a comfortable life by meeting your basic needs, such as shelter, clothes, electricity, telephones, cellphones, or transportation.  With these five ways of improving your credit score, get ready to make this year a comfortable and fabulous year for you, and achieve that credit score goal of yours!   

 

 

 

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