There’s a lot of difficulties and financial challenges involved with when you have a low credit score. These can make you pay more for things you’re going to buy as you are liable to be overcharged. This can even lead to more debt and much lower credit. So if there’s anything to avoid at all, it’s having a low credit score.
A low credit score is known as a FICO score that’s 669 or lesser. Anyone in this kind of situation will probably be thinking of ways of getting out and boosting their credit scores. However, there’s good news for you as there are me hods as strategies you can start applying to boost and skyrocket your credit score.
Request for your credit balance
The first and most important step to increase your credit score is to order for a copy of your credit details and take a cursory look at the areas that need improvement. These can include various credit card transactions that you have made in the past few weeks. So what you can do it to reach out to the various bureaus close to you and they will send you a copy at the end of every year.
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Call for disputes when mistakes happen
Your credit score may keep coming down as a result of errors that comes from the account processors. Having the wrong data being processed into your account can cause your credit score to drag down. This can be in the form of your personal information being altered and other mistakes that could spring up. Sometimes your credit score can drop down when you don’t pay on time and your payment takes long to process.
So you should file reports on time which can take anywhere from 30 days to resolve, but doing this will increase your credit score overtimes.
Pay with cash more often
When you buy things with your credit card from time to time you stand at risk of reducing your credit score. This is because there’s a limit on your credit card, and once you’ve exceeded this limit, your credit score goes down gradually. This is why you are advised to stay below 30% with the way you use your credit card for purchases. You can easily achieve this by regularly withdrawing cash and paying with cash directly instead of using your credit card all the time.
Try to clear all outstanding debts
You must pay off all outstanding debts fully as quickly as possible. You don’t want to be tagged as a creditor because this will put your credit score at risk of dropping. You want to make sure you don’t delay in paying your lenders as you want them to build trust with you and give you good recommendations. This helps your credit score a lot and makes you eligible for more offers in the future.
Don’t apply for a new card
For you to have your credit score increase, It is better that you try as much as possible to keep using the same credit card. Don’t apply for new credit cards because your lenders might have to check your credit history and if they see that you have a track record of low credit score they may want to slow things down with you until this is fixed. So your focus should be fixing your credit score before applying for new cards.
Don’t close your accounts
Having a low credit score can make you feel discouraged to continue using the account and make you feel the need to close it down. You want to make sure you avoid this even if you have a low credit score. This because closing your accounts can affect your credit history which can still affect your credit score when you try to open a new credit card.
Pay debts gradually
If you have debts, a smart way to go around this is to pay gradually every month until you can clear off the debts. This is because your credit score won’t just go in a day. It’s a gradual process so when you pay debts sequentially, it improves your track records every single time and also increases your credit score.
Contact your creditors
You shouldn’t let a low credit score keep you away from your creditors because they can help you out. Some of the time, they’ll have programs that will support you financially for the main time. This is why building a strong relationship with your creditors is so much important
Reach out to experts
Some experts will help you decide the best practices for maintaining a strong credit score. They will help you come up with effective strategies which will help you in the long run.
It is very much important that you don’t give up when trying to improve your credit card score. It might seem like a stressful process but you need to keep going and coming up with new strategies and you’ll see results over time