Do you want to increase your credit card score? Well, let me tell you a secret… it will not be easy but the fruits are sweet.
You cannot compare a credit card score to a car which you easily rev the engine and get the results almost instantly.
You can compare your credit card score to your driving record. This considers how you have behaved in the past, as opposed to what you are currently doing.
The following are the 7 actions you can take to increase your credit card score:
- Be keen on the credit card balances
- Clear all the credit card balances
- Leave old debt on your report
- Pay bills on time
- Do not obsess
Be keen on the credit card balances
Among the main indicators of your credit card score include how much revolving credit you have and the current balance. If this percentage is small, your credit score is in safer hands.
To ensure your credit card score rises, make payments for any balances and ensure they are low at all times.
One thing to remember though is that clearing your balances in full at the end of each month doesn’t mean that your utilization ratio would be low. There are some issuers who use the balance on your statement as the one reported to the bureau. To avoid this, confirm with the credit card issuers whether you can use multiple payments throughout the month.
Clear all the credit card balances
John Ulzheimer, a nationally recognized credit expert formerly of FICO and Equifax, advises that “A good way to improve your credit score is to eliminate nuisance balance.”
Among the techniques used to determine what your credit card score is the balances on all your cards. For that reason, you may find it wise to use a single card for your transactions, instead of more than one.
via Bank Rate
Leave old debt on your report
There are people who think that having an old debt report on their card does more harm than good to them. Immediately they have it settled, they are usually up and down trying to clear it up. But that is a bad idea.
Good debt — debt that you’ve handled well and paid as agreed — is good for your credit. The longer your history of good debt is, the better it is for your score.
Pay bills on time
Do you already have well planned 2017 resolutions? Well, you may find it necessary to include on the list paying-off any high-interest credit card debt that is giving you sleepless nights. This will not only place you in the right direction when it comes to financial freedom but will also up your credit card score.
You may be having a debt and some savings for a huge purchase. Well, you stand to benefit more if you used your savings to clear up the debt and then seek help when in need of it. This trick can go a long way in increasing your credit score.
Do not obsess
Take as much attention from your credit score as you can if you know very soon you may be in need of credit. In the meantime, pay your bills and be responsible in using your credit.
Are you getting ready to make a big purchase, such as a home or car? At least a few months in advance, spring for a copy of your credit scores. Also, be regular at keeping your credit reports even when denied any credit.