Credit scores are one of the most important things in a person’s life. Without it, you wouldn’t be able to take out loans, acquire housing and determine how much interest you have to pay. It’s for these reasons alone you need to maintain a high score. However, we understand that everyone’s situation is different. Some people may have a low credit score and are unsure on how to increase it. Raising your score is definitely possible, but it will require tenacity and effort on your part. Here are a few ways to help people increase their credit score and how your score can be impacted.
Pay Off Your Student Loans
One of the most common reasons why some scores are lowered is because of how draining paying off student loans can be. Missing payment deadlines can significantly lower your score. What’s worse is that some lenders aren’t exactly forgiving and can make it decrease more than usual. So, obviously, the most logical solution is to pay them off as fast as you can.
Granted, this is easier said than done for some people. Not everyone is in a situation where they can make $1000 payments each month. But that doesn’t mean all is lost. You can lower your debt and interest rates by looking into a student loan refinance plan. Refinancing your student loans simply means consolidating everything into one lump sum payment. Student loan refinancing also allows you to take out a new one, if you choose to.
Reduce Your Monthly Expenses
While most of your monthly expenses won’t have an effect, you’d be amazed at how easy things become with lower expenses. Outside of bills and mortgage payments, you need to find ways to reduce how much you pay. This can include buying less at the store and using less power in your home. Following these helpful money tips can help you save hundreds per month.
See If You Can Get a Credit Increase
Consider asking your credit card company for an increase as another way you can increase your score. However, there’s a lot more to it than just asking. You have to consider factors such as any growth in your current income and how positive your history with the company is. If you’ve been with the same company for years with little to no issues, then you actually have a decent chance of being eligible for an increase. But before you do, it’s best if you check your report for any discrepancies. Discrepancies are things that shouldn’t be on your report. You want to have a crystal-clear report to further maximize your chances. Call your company and dispute anything that shouldn’t be there.
Always Stay Current on Your Bills
We’ve already mentioned that missing a payment can impact your score. But we didn’t go over how late payments, whether it’s a bill or a loan payment, can last up to almost eight years on your report. Now, that’s not to say missing a payment here and there will heavily impact you. All you need to do is pay it off as soon as you can. However, routinely missing the deadlines and having your account marked as a delinquent will. If you miss a payment, you’ll be notified that your creditor is going to report it to the credit bureau in a certain amount of time. Should this occur, contact them immediately and pay it off.