Your overall financial success greatly depends on your credit history. A high credit score can qualify you for access to larger loan amounts you can use to purchase big-ticket items such as a car, a home, or any other commodity you cannot afford in cash. Conversely, a low or poor credit score may limit your purchasing power and cost you more in high-interest rates and other additional fees. Read below 10 Need To Know Ways To Improve Your Credit Score In 2021 …
Though everyone is ultimately responsible for their own credit score, a recent study conducted by the Federal Trade Commission revealed that 5% of buyers had errors on their credit history. Consequently, these buyers may have been paying higher interest rates and higher insurance premiums. Likewise, 20% of these buyers reported errors on their credit report, boosting their credit score and qualifying for lower interest rates. When is the last time you checked your credit report for errors? You might be missing out on low-interest rates and big savings!
Obtain A Copy Of Your Free Credit Score From Experian, Equifax, Or TransUnion
It is easy to get a free copy of all three of your credit score online. Once you have requested your free credit report from the three major credit bureaus (Experian, Equifax, TransUnion), you can check your credit report accuracy. Additionally, request a copy of your credit score from the Fair Isaac Corporation (FICO) or from any creditor who offers free FICO scores.
Check Your Credit Report For Errors
Credit fraud and identity theft go hand-in-hand. Upwards of 50 million Americans have had their identities stolen and their credit lines abused. When reviewing your credit history for errors, be sure to look for any suspicious activity or outstanding amounts you do not remember authorizing …
Correct Any And All Inaccuracies On Your Credit Score
You must dispute any and all errors on your credit report. Failure to do so will only result in financial misfortune and keep you from accessing larger lines of credit and low-interest loans. Contact the credit bureaus who you believe have reported inaccuracies and file a formal dispute, contesting any incorrect information.
Most credit bureaus will request validation (evidence) of a suggested inaccuracy, asking for proof of payment or repayment. By the same token, if a company fails to prove a debt or other credit report error, they must remove the mistake.
Avoid Late Payments And Debt Delinquencies
Practice the habit of paying your bills on time. Overdue bills and late payments affect 35% of your credit score. Keep your credit score on track by consistently paying your monthly bills. Most often, a 30-day delinquency will be reported to the credit bureaus, significantly impacting your credit history.
Avoid charge-offs lest your outstanding debt is sold to a third-party collection agency. This, more than all, negatively impacts your credit score. If you have a hard time remembering to pay your bills on time, set up recurring automatic bill payments for your monthly bills. Watch your credit score increase month-to-month!
Pay Off Your Debt
It is never good to be in debt. The more outstanding debt you accrue, the lower your credit score will fall. Understand the difference between installment debt and revolving debt.
Installment debts have predetermined loan durations and regular monthly payments. Installment debts include auto loans, student loans, home loans, etc. Typically, installment debts are more manageable than revolving debts.
Revolving debts usually require no monthly payment and loan limits are exceedingly high. Credit bureaus do not look favorably upon debts of this nature.