What is the fastest way for increasing the credit score? What are the easiest techniques for a higher credit score? Everybody is searching for the fastest and easiest way for increasing the credit score. However, there is a lot of confusion on the methods that actually affect the credit score of an individual or a business. Many times, people adopt many different tips and tricks for raising the score but to no benefit. Absolutely no change to the score is noticed despite the continuous effort. Then the question arises, what is a credit score? And what are the guaranteed ways of increasing it?
Credit Bazaar is an insider to credit score and knows all the trades of the market. Our team of experts will guide you in a very professional manner to raise your business or personal credit score in a quick and easy manner. We know exactly the methods that actually increase your score so that you do not have to waste time trying out the different unworkable ways.
Honestly, nobody cares about a credit score, until you need something. On the other hand, it is important that you always maintain an average credit score at least, so that in the time of need, you do have to be in a hurry. At the time of urgency, your credit score can be increased instantly. This can happen only when you maintain your score at 700, which is the average credit score. This will prove beneficial in the long run, as whenever you are in the market for a house, a credit card or a new car, it is a smart pre-requisite to be aware of the kind of credit score you would require before applying for a loan. There are various advantages of having a good credit score as it allows you to save money on security deposits, on new utilities, cell phone services, insurance and so on.
For creating an average credit score and maintaining it over the years, you need to maintain good credit habits such as paying the bills on time, not opening any unwanted new credit lines and resisting the urge for taking any debts. Such habits make you look dependable in the eyes of the lender, and hence, they give you loans easily and with complete trust. Being responsible and wise is the key here! Following are some of the ways that you can follow (in) long-term for maintaining a good average credit score:
- Understanding your credit score: The first and foremost thing to understand is what exactly is a credit score and how maintaining an average credit score throughout can help you in various credit-related demands. So, focus on understanding more about it, what constitutes a credit score, factors influencing it, and further making sure that there are no slipups on those parameters. Several kinds of debts are involved in a credit score and how you service them forms your credit score. All types of loans will be reflected here right from an auto loan to a personal loan to a business loan. It is vital to understand that credit cards are unsecured debts too and hence, they form a significant part of your credit score. An in-detail understanding is required for maintaining a credit score at an average level.
- Never withdraw cash from credit cards: Remember this rule that banks charge a higher interest rate when you withdraw cash from your credit card than they do when you make regular purchases. Hence, this can be an exorbitant affair and may create a ripple effect on your credit score. Moreover, your every credit move is being monitored and when you take cash from credit cards, it indicates the lenders that you are in a desperate need for money which can hamper your credit score in the long run.
- Find your credit score: The first and foremost thing to know is what exactly is your current credit score. If you do not know where you began, then it is difficult to track your credit score progress properly. Banks provide free credit score tracking for clients and that is how you can check your score for free at any point in time. You do not have to pay anything for knowing your credit score. Moreover, your credit need not be perfect. However, once you maintain an average score over a period of time, you might be able to avail of various services very easily.
- Fetch your credit report: If you find out that your credit score is lower than your expectation, but you are not aware of the reason, get hold of your credit report immediately. By and large, your entire credit activity can be investigated thoroughly in this way. Credit Bazaar provides you an in-depth credit report that you can utilize to understand where you are going wrong and what exactly you have to change. Once you get hold of your credit report, just sit down, and go through it with patience, slowly line by line. It is very common to come across a fraudulent activity or errors that can damage your score. If you stumble upon a fallacy, there is no need to worry as you can correct it by contacting the bureau and disputing your credit report.
- Get a grip on your debt: No credit bureau would openly share with you the modus operandi of your credit score, although we at Credit Bazaar know the five general weights that predominantly guide your credit score, and they are payment history, current debt balances, length of credit history, new credit and the credit mix. All these factors are important in specific proportions as they contribute to your credit score. When your credit card debt is high, it would be difficult to increase your overall score if your utilization rate is soaring. You need to make a comprehensive plan to understand how much debt you have precisely, subsequently the elite tools can be used to help pay off all debts on your credit card, increase your credit score and save thousands of funds in the process.
- Keep low credit card balances: In a situation where you are struggling to pay off a debt, fight the urge to accumulate new debt in place of the old one. While scrutinizing your credit report, lenders prefer borrowers with 30% or less credit utilization rate. This is because it demonstrates that you can manage your credit skillfully. For the purpose of maintaining an average credit score, the balances must be well taken care of.
- Creation of an orderly system for timely payments: The payment history and credit utilization rate are the two topmost factors that impact your credit score. Though you cannot do much about the past, you can be well aware of your future payments. The lenders aim at lending the borrowers who have a reliable and steady past payment history, as that is the best indication that you will pay your future bills also on time. Note down that you should not even depend on yourself for remembering all the payments. Automatic payments are dependable or even setting up reminders on your calendar can make sure that you do not miss a payment in the future. Just ensure that you are checking your bills when they come in, in case of automatic payments. Also, when payments are automated, it is important that you check credit card statements, so that it is verified that you’re being charged on the agreed terms and conditions, and are paying the appropriate amount that needs to be paid.
- Keep tabs on both your credit report and your credit score: A significant problem that can create mayhem on your credit score is identity theft issues. It is important to keep a keen eye on your credit reports and credit score so that you can track and report any prospective fraudulent activity just as you notice it. Always remember to grab a free credit report once a year from each of the three major credit bureaus. The best way to go about this is that you can set a reminder every four months in your calendar, in order to check with a different credit bureau. In this way, every four months you get an updated credit report and also a perspective from a diverse agency. Credit Bazaar provides you information about your credit score so that you can take appropriate steps for building an average credit score. With such a clear view of your financial accounts, any impending problems can be tracked as soon as possible. With patience, over time, you can maintain an average credit score easily and efficiently.
- Leave those unused credit card accounts open: If you are a shopaholic or an over-spender, having many credit cards can give you an urge to spend your money. But if you keep your spendthrift personality aside, there is no big harm in keeping unused credit card accounts open. Additionally, it can actually prove to be advantageous for you. Basically, we advise you this because when you close a credit card account, you do not have that much credit that the closed account combined was offering. This means that the amount that you could have used every month on the card, you cannot anymore, which in turn increases your credit utilization ratio. The lenders want to see this ratio at a minimum of 30% or less.
- Avoid risky ventures that can potentially lead to hard inquiries: If you get involved in any dangerous ventures, there is a strong possibility that there might be a hard inquiry on your credit report. They might feel that there is some suspicious activity and might want to investigate the same. Primarily, such an inquiry occurs when a creditor or lender, for a credit card or mortgage, takes a look at your credit part for the purpose of deciding whether or not to lend you money. Such an inquiry actually has the power to lower your credit score, particularly if there are excessive of them. Moreover, your credit score will recover over time, but if your credit score is already low, you might not be able to take this hit. Thus, just beware of getting into any risky undertakings if you are planning to take any credit such as an auto loan, mortgage, or a personal loan. Just hold it up for some time.
- Don’t open new cards one after the other: When your main aim is to maintain an average credit score over time, it might not be a good decision to open new credit cards one after the other. When there are numerous credit cards you might have a problem tracking their activities, which can lead to many blunders that could potentially hurt your credit by default. Just when you purchase a new credit card, a hard inquiry is made by the issuer to check into your credit behavior, which brings down the credit score. This action brings down the credit score by a few points temporarily. Though such a slipup is going to recover within a few months, however, if you are aiming to maintain an average credit score over a period of time, you might not want to go through such a fallout. Furthermore, an added credit card means a higher sense of temptation to spend and so you have to remember these additional payments. Hence, it is advised that you wait for your credit score to be maintained at an average level before applying for a new credit card.
Credit Bazaar guides you step-by-step with full-time assistance of our team of experts, on how to maintain the credit score that you want. You just have to decide on how much credit score you require, and appropriate footsteps for achieving the same will be provided. Professionals at Credit Bazaar help you to be in good standing by maintaining a decent average credit score with plenty of healthy credit habits, tricks, and tips that you could make use of. Being vigilant in your credit usage makes you look good on your credit reports!
For any queries regarding Credit Score improvement or Loan contact Credit Bazaar CR Arcade 2nd Floor, Opposite Delta Garden, Next to Shree Mahalaxmi Restaurant, Mira Road East, Thane : 401107