A credit score is something that most people hate having to deal with, but it is absolutely necessary if you ever want to receive a home or car loan, among other financial endeavors. However, if you are young or simply have not paid attention to it, your score may not be the best. Here are some of the best and simplest ways to raise your credit score.
Pay Off Credit Card Debt
Perhaps the best way to remove as much negative information from your credit report as possible and increase the score is to begin paying off your credit card debts. Yes, this is easier said than done, but it is absolutely necessary if you wish to see your score increase. You can accomplish this by taking on additional jobs or speaking with a professional, like those at Ardmore Finance, about other options that you can utilize to pay down credit card debt. Keeping up with your payments consistently and lowering your usage can really help to boost your score.
Increase Credit Card Limit
If you are at a healthy standing with your credit card balances, you may be able to increase your credit score by simply requesting a higher credit limit on one or two cards. In fact, this may be the easiest thing to do on this list, as credit card companies practically beg their clients to increase their credit limits. However, don’t let yourself use the extra credit. This is simply to give yourself a lower ratio of credit used to credit available. It is generally best to keep this below 10% if possible.
Contact the Three Credit Bureaus
Sometimes, paying off credit card debt is not enough to see a substantial increase in your credit score. Unfortunately, most people tend to quit after seeing this. However, it is important for you to understand that credit scores do not just reflect your debts but also errors that may have been made somewhere along the line. This is why it is highly recommended for you to contact all three credit bureaus to investigate and remove any errors that may have been included in your report. An error is something such as your report showing that you owe a debt that you have already paid off. Clearing this up can go a long way.
Work With a Financial Advisor
If you have the funds and time, working with a financial advisor can do wonders for your credit score. Not only will they be able to inform you of the various techniques to increase your score, but they can also instill good financial habits that may keep you from landing back in the same situation in the future.
Overall, if you’re looking to improve your financial security, focusing on increasing your credit score is a great first step.