For a healthy financial lifestyle, it is pivotal to balance your income, savings and expenditure. If any one of these takes a hit, then it is sure that the rest will also be adversely affected. Pandemic has pushed most of us back economically and, now slowly yet steadily, everyone is trying to revive the economy.
The three credit reporting agencies, Experian, TransUnion and Equifax, rigorously collect your financial data at every interval. These agencies look at your spendings plus how you’re paying them and then score accordingly. These scores are crucial for your future economic endeavours. Lack of a good score would mean lesser credit fluidity.
There are professional advisors online to help you with financial assistance. It is easy to find them than ever. The email finder websites like GetEmail.io come as a boon. It can fetch you the desired email address in just a matter of seconds. It also comes with a chrome extension to your Linkedin account so finding Linkedin email contacts becomes easy.
Here are some helpful tips to better your credit score,
The bill payment
One thing that will always help you to improve your credit scores is to make the bill payments in time. Failing to pay your bills regularly impacts your credit scores. Usually, a late payment stays on the credit report for over 7 years. Even though you’ve made up with the rest of your finances, this negative remark will certainly affect you.
A few ways to diligently make payments is through setting reminders. Authorize automated payments with the bank so you won’t have to worry about being late. Another trick is to make more than one payment in the given cycle. Your expense reports are sent to the agencies before your payment date. And, the more expenses are on the report, the more it affects. So making multiple payments will show less expenditure.
The credit utilization
It is nothing but the total amount of credit you have taken from the total credit limit you have. People usually mistake it to be limited only to credit cards. However, all three agencies take every credit you’ve taken into consideration, like loans, mortgages, credit cards, home equities etc.
Generally, credit utilization takes up to 30% of your credit score. It is often overlooked by the ones who are trying to improve their credit score. But when you look at it, 30% would mean $300 expenses for every $1000 credit limit. As long as you are within the limit and paying within time, you can get much more effective finance offers.
Other important determinants
The above two are the make or break factors for improving the credit score. Apart from them, here are some other pointers to look out for,
- Keep a tab on the accuracy of the credit reports. There is so much information that the agencies keep updating and renewing, it is easy to lose track or update incorrectly. With a close look at the report, you can claim disputes for any incorrect information.
- Own a credit card even if you don’t wish to. And add a few minimum recurring expenses. This way credit score will improve.
- The last resort is for quick loan shopping. If you aren’t eligible for huge loans, then take quick loans for $200 or $1000. Pay them within time. All of these transactions will also be notified to the agencies and hence improve the score eventually.
It isn’t easy to rebuild your credit score and usually takes a minimum of 3 to 6 months. It is a slow and step-by-step process. So, maintain the payments and expenses diligently to repair the credit score