An excellent credit score can give you access to great financial freedom. A credit score above 800 is the goal many people have, but a 700 score is also considered good. Whether, you want to buy a home, or car, or need to fix your score after bankruptcy this is an excellent way to start. Free apps like Credit Karma, Experian, and TransUnion are the best credit monitoring apps that report to all three credit bureaus every month.
Applying for a secure card will boost your credit score drastically even with a low fico score under 600. The Discover card shows different credit ranges and a simulator to give you an idea of how your score is broken down. Here are five different ways to raise your credit score easily and fast.
1. Payoff Outstanding Debt
When applying to get a mortgage all of your existing debt will be considered, as this will determine whether or not you qualify and what interest will be offered to you. If you have credit card debt it is essential that you pay off as much as possible in order to apply for a home finance loan. Other debts such as medical bills, car loans, and even student loans will also affect how big the loan you will possibly be granted. Ensure that as much of your debt is paid off all at once, as this will help improve your score dramatically.
2. Payoff Outstanding Bills Bi-Weekly
Many companies only require a single payment on outstanding bills monthly; however, making payments on outstanding bills bi-weekly or perhaps weekly or wherever possible is just about the easiest way to increase credit history ratings quickly. By paying often, you will be decreasing how much interest is being charged on any outstanding account balances too.
3. Don’t Close Outstanding or Unused Credit Cards
It may be tempting to undergo your credit report and close every of the unused store cards and credit cards that are on it. On the other hand, closing a number of accounts prior to applying for a mortgage will in fact have a negative effect on your credit score – the longer your history of credit is, the more chance you may have of qualifying for a home loan. If you feel the need to close accounts that are paid for wait until you’ve been approved for a home finance loan.
4. Apply for a Secured Credit-Based Card
If you have a low credit history – or worse still, no history at all – you are able to help build one quickly by means of a secured credit card. Unlike regular credit cards, a secured credit card requires someone to place an upfront security deposit engrossed, which is held as collateral by the card company. In many situations, you will be granted credit after a few months of responsible use, which will provide your credit score using the boost it needs.
5. I Cannot Stress This Enough “Pay All Bills on Time”
Many people think that their credit score is only affected by plastic cards, store cards, and car loan payments. However, utility bills and medical bills are also considered when determining a score. As a result, all bills that have been in your name should be paid on time every month. When implementing these tips for a few months, will help to increase credit scores dramatically, says the Local Records Office. It is important to keep in mind that the higher your credit history is, the higher your odds of being approved for a home loan and the lower your repayment interest will be.