If you’re one of the many people thinking about how to raise your credit score, there are several things you need to know. Beginning with, you’re not alone. So many people struggle with their finances, especially those who were effected by the slow-down of the economy. If you’re one of these people, here you’ll find a number of pointers on raising your credit score effectively.
You should begin by knowing exactly what’s on your credit report. The credit reporting agencies are obligated to provide every consumer a free credit report, contact these agencies for more information. When you know what’s on your credit report, you know what you’re dealing with which makes fixing it much easier.
You may think that paying down chunks of your mortgage or car payment will increase your credit score. In reality, getting rid of toxic credit card debt will help your credit score more than paying off a mortgage or car loan. You want to make sure that if you have cards that are nearly maxed out that you bring down the balances on these cards.
If you pay off your credit cards on a monthly basis, but carry a large balance throughout the month, you may actually be hurting your score. This probably sounds strange, but credit reporting agencies use a particular formula to calculate credit scores. This includes checking out you balances at a particular time in the month. If the balance on your card is too high, you’ve hurt your credit score (this process doesn’t take into account whether you pay off the entire amount at the end of the month).
Check the limits of your credit cards on your credit report. While many credit card companies will increase your limit they may not always report it to the credit agencies. This means that while you may still be charging within your limit, it may possibly be showing up as overcharging on your credit report which hurts your credit score.
The question of how to raise your credit score is a bit tricky. However, with a little patience, persistence and research you can be on your path to steadily raising your credit score. Remember, the length of the process will depend on how tarnished your credit score really is.
Credit Card Debt? Clean Up Your Credit Score Now
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