A new year is always a great time for a new start, new projects and a great opportunity to achieve your goals. Thus, this new year is the best time to keep an eye on your credit life and raise your FICO score for higher and easier loans that help you to achieve all your New Year purposes.
The FICO score is the most commonly used credit score and ranges from 300 to 850. Lenders use this three-digit number to study your indebtedness capacity in order to decide whether to give you credit and at what interest rate and terms. If you discover your score is low, there are many strategies to increase your credit score.
You probably already know that you can gradually raise your credit scores over time, by doing things like paying your bills on time and avoiding credit score killers like collection accounts, charge-offs, or bankruptcy. But, how can you raise your FICO score in a hurry? Well, here we have some New Year tips on getting your FICO score raised in a quick and easy way.
- Dispute inaccuracies or negative information on your report: Keep an eye on your credit report for inaccuracies or wrong information, if you find errors they can be corrected. When a credit-reporting agency receives a dispute about an account, the Fair Credit Reporting Act requires the credit bureau to indicate on the credit report any account that is in dispute, these accounts are basically suppressed from your credit history in terms of your credit score. Besides, when the negative information is deleted from your Equifax, Experian and TransUnion credit reports, you could see a nice bounce in your FICO scores the very next month.
- Pay your credit card balances before the due date: Given that most creditors only report your balance to the credit bureaus once per month, your credit score can be very low if you pay your bills past the due date even if you pay your debts in full each month. But if you pay your credit card balances before the due date, your credit card company will report your reduced balances to the credit bureaus instead of reporting your balances that were due.
- Don’t close accounts after they’re paid off: In fact, having cards with zero balances reinforces your credit utilization ratio because you haven’t used any of your available credit on those cards. If you close those accounts, you will reduce the total amount of your available credit. When you pay off your cards it is always a good idea to leave them open and even use them sparingly from time to time to keep them active.
- Rapid Rescoring: Rapid rescoring is a service that lenders use to make quick updates to your credit reports. The goal is to improve the information in your credit history, resulting in a higher credit score. This card can be used for people in the market for a mortgage. So when you apply for a mortgage from the lender of your choice, but there are mistakes or inaccurate information showing on your credit reports, you have the right to get that cleared up. By removing negative items, reducing loan balances, and fixing errors, it may be easier to get approved for a low-cost loan.
- Add your rent info to your credit files: If you are a renter in United States, you can have your rental payment history added to their credit reports. You can make your credit scores jump quickly just by paying your rent on time, that’s an easy way to increase your credit ratio.
- Convert your “negative” debt in “positive” debt: As we said before, a great amount on your credit card debt can reduce your credit score, but there is an excellent way to convert this negative debt in positive debt if you don’t have cash to eliminate or significantly reduce your credit card bills. This can be done by getting installment loans like personal loans or peer-to-peer loans to pay off credit card bills, after this your credit score will start growing.
This is the right time to get your FICO score raised and build an excellent credit history in 2019. Prestigio Jewelers is always available to help you improve your credit score and get your credit approved. If you haven’t started your credit life, Prestigio Jewelers is the best place to start, we have helped thousands establish and re-establish credit for over 20 years. Come in now to the nearest Prestigio location and get pre-approved for credit.