5 Helpful Tips to Increase Your Credit Score this Year
Good credit is vital when looking to secure a mortgage for a new home. However, you may be a long way from the requirements. So here are some tips to help increase your credit score.
Develop a Plan of Action
If you have a low credit score, it’s more than likely you have had a bad relationship with money. But building your credit requires sound financial management. Whatever you did in the past can be changed, but it can take some time. Experts like Paul Ognibene understand the value of money and where to use it. But you don’t need a BA or a degree to get to grips with your finances. All you need to do is make a plan of action to raise your credit score. Start by identifying where you go wrong with money, such as living beyond your credit card means.
Pay Off Outstanding Debts
The most significant mark on your credit record is outstanding debts. Debts you owe, especially defaulted payments, will massively negatively impact your credit score. And a mortgage lender will likely pass on your application. Fortunately, you can combat this by coming up with an arrangement to pay your debts. Once they are finished, your credit score will increase substantially. However, you can apply for a low credit mortgage through organizations that specialize in offering low-credit loans. But your credit score must be between 500 and 600.
Increase Your Credit Score with Dummy Loans
A credit score is considered bad if it is below 550. In the United States, around 11% of Americans have a score below this. However, once your bad credit is somewhere between 250 and 300, you will be offered multiple ways of increasing your score. One of these methods includes dummy loans. With a dummy loan, a set amount is credited to your account, but you don’t receive the money. You just make installments to pay the money back, which is returned to you upon repayment. Then your credit score will increase if you don’t miss any payments.
Sign Up to Credit Score Sites
It can be confusing for some people to find, manage, and resolve credit data. Back in the day, it was even more challenging. Fortunately, today you can use excellent credit scoring sites and apps like ClearScore. And the best part is that they offer unique services and tools for free. For example, you can see your score, any debts you owe, and anything affecting your credit score. Additionally, they provide access to services, such as dummy loans, for increasing your score. Finally, these sites also have tons of helpful articles on their blogs to help you with credit.
Look for Wrong Data and Fix It
Your credit score is a delicate thing, and it can be broken by incorrect data. It isn’t uncommon for something to negatively impact your score through no fault of your own. Late payments are a perfect example. Even if you always pay your debts on time, reporting companies can upload the data wrong or late. This looks like you have made late repayments when you have not. And these are harmful to your credit report. You can use various sites for disputing inaccurate credit data. However, you should be aware that your report can take a while to reflect changes.
You can take steps to increase your credit score. Some of the easiest include signing up to credit management sites, paying debts, and disputing inaccurate data on your credit report.