Could your credit score use a boost? Let’s be honest, many of us could always use a credit boost! But how do you increase your score? We’re here to give you some tips and advice to help you achieve your goal of a higher credit score!
What is a Credit Score Exactly?
Let’s begin with a brief overview of what a credit score is. A credit score is a three-digit number that’s used to determine the likelihood you will pay back a loan. The range is from 300-850, with 300 being a very poor score, and 850 an excellent score. The information to determine your credit score is pulled from the information in your credit report, which is a document showing your history of managing and repaying debt.
Now that you understand what a credit score is, let’s dive in to some ways you can increase this score!
1. Review Your Credit Report
The first thing you want to do, if you haven’t already, is take a look at your credit report. There is always the possibility that there are errors on your report that you can dispute, which will be a quick fix to your credit score. You are allowed one free credit report per year, so when you review it, be sure to look at every little detail and make sure everything is correct!
2. Pay More Than Once Per Billing Cycle
If you’re able to, try paying off your bills, credit card, etc. more than once per billing cycle. This helps by lowering your credit utilization and thus increasing your score!
3. Consider Consolidating Your Debt
While consolidating your debt could cause a drop in your credit score initially, in the long run it could actually improve it. As long as you are making your payments on time once your debt is consolidated, you will be eliminating your debt, therefore increasing your credit score quickly!
4. Take a Look at Your Credit Utilization
Credit utilization rate is the amount of revolving credit you’re using divided by the amount of revolving credit you have available. This rate makes up 30% of your credit score, and you typically never want to exceed this percentage. Paying attention to this rate and making sure you aren’t exceeding that 30% will help keep you from hurting your credit score.
5. Set Up Automatic Payments
If you struggle to remember to pay your bills on time, it can be very helpful to set up automatic payments. When you consistently are paying your bills on time, this will improve your credit score. If you don’t like the idea of automatic payments, we recommend setting up payment reminders for all of your bills, so you never miss a payment!
Does It Take A Long Time to Improve Your Credit Score?
So, how long can it take to improve your credit score? Generally, in order to see an increase in your score, you will want to exhibit good credit behavior over the course of at least 3-6 months. As long as you are working to improve your credit and not doing anything that could harm your score, you will see improvement. While it’s difficult to estimate an exact time frame, as long as you’re patient and consistent with the tips we’ve listed for you above, you’ll reach your goal credit score in no time!
Interested in Credit Repair Services? Team Crescenzo is here to help! Contact us today for more information.