Credit Scores. It can be a sensitive topic depending on your perspective. It can take many years to build your credit score and only a few months to ruin it. Credit mishaps have happened to all of us. Sometimes, bad credit scores can result from circumstances beyond our control, such as divorce, medical bills, or bankruptcy. Maintaining your credit is an essential part of everyday life. Low credit scores will increase the cost of big purchases. Over time, you will have to pay a higher rate of interest on loans.
A score is used to demonstrate credit history, timely payments, responsibility, and discipline. Low credit scores will improve over time so don’t panic. If you are looking for equipment financing or leasing in the near future, it is a good idea to raise your credit score. You might consider raising your score before you apply. This could be the difference between getting you to the next level or saving money.
Let’s be real. There is no magic way to increase your credit score by 100 points per month. Although some Credit Repair “Experts” may try to convince you that this is possible, it is simply not possible. It’s a common phrase that you hear in ads: “1-2% APR for excellent Credit” but you don’t know what excellent credit is. Let’s break it down. There are four tiers to credit.
Tier 1 (Excellent credit): 700 or more
Tier 2 (Good Credit): 660-699
Tier 3 (Fair Credit): 620-659
Tier 4 (Poor Credit), 619 or below
Credit score
The best rates are usually for Tier 1 and 2. Tier 4 is the most difficult to obtain approval for. It’s advisable to improve your Tier 3 score. It is an important part of your business and life. It can be difficult to get financing if your business is newer and doesn’t have cashflow statements. Lenders will assess your credit score. It is important to raise your credit score as soon as possible.
These are our top 4 hacks to quickly improve your credit score. This improvement can range from 10 to 40 points, which should be sufficient to boost your credit score. These are just a few tips to improve your credit score. We will provide a more detailed guide later on how to maintain your credit.
Negative marks can be disputed – We get it. Sometimes it’s difficult to pay your bills on schedule. It can be difficult to pay your bills on time when you have to manage your family and business. TransUnion, Equifax and Experian are the three major credit reporting agencies. Each bureau will have a slightly different credit report. You can contact them to dispute any of the information. Make copies of all documents and write as much detail as possible.
NOTE: Take your time and do your research – this can have a big impact on your score.
Credit Karma suggests opening a new secured credit card. People with credit scores of 800 or higher typically have seven credit cards open. Although you shouldn’t open more than one per year, it is a good guideline number. You can still be approved for a secured card no matter what your credit score is. Secured credit cards are the best way for you to rebuild your credit. The lender will grant you credit, although you’ll need to make a deposit. This Guide by Magnify Money will help you choose a secure credit card.
Note: Keep your credit usage below 30%. You should monitor your spending. You should only open one credit card, as more could damage your score.
Your Credit Limits Should be Increased – Contact your card companies to request that your credit limits are increased. It’s a good idea to raise your credit limits if you don’t have 100% credit utilization. Even if you only get a 10% increase it will improve your overall report health.
Becoming an Authorized User – This is a bit more difficult. Someone with good credit standing is required. They will add you to their credit card accounts. They will give you a card that can be linked to their existing credit card accounts and they will be responsible for any charges. The people you should ask are family members and close friends. You will have to convince someone to add you. Don’t take it too personally. You can get up to 50 points by becoming an authorized user.
TIP: Do not use the card after it is added. It’s best to shred it to avoid any temptations.
It is crucial to leverage your credit in order to get the most from your money. These four hacks will help you improve your score. It’s important to not overspend on your increased credit limit and to pay your bills on-time. Autopay is a popular option to avoid late payments. Let us know how autopay has helped you.
