Whether you’re credit score is very poor, or you just need a little boost, chances are you’re open to any new tips and tricks anyone has to offer. So, we’ve gone ahead and put together some of our favorites we think can help you improve your credit score in no time – just take a look below!
Pay Attention To Your Credit Report
Everyone is entitled to one penalty-free credit report per year from each of the three major credit-reporting agencies, and if you’re not utilizing yours every year, you really should be. Simply paying attention to what your credit report says can save you a ton of trouble, especially if there’s an error or outdated information on your report driving your score down that you might otherwise had known about, so pay attention!
Diversify
Just about everyone is in at least a little debt. In fact, contrary to what most people believe, it’s not so much a bad thing as it is just a normal, somewhat unfortunate side effect of life. There’s good debt, like mortgages and auto loans, and not so good debt, like excessive credit card bills, and that’s life. What’s most important is that you keep your debt as diverse as possible. Your “credit mix,” meaning the different types of financing you have, accounts for roughly 10% of your total credit score, so keep things fresh and avoid letting all your debt pile up in any one category.
Consider Consolidation
Piling all your debt together into one mega-debt (consolidating your loans) can seem scary, and it may even cause a minor dip in your credit score, but we assure you this is only temporary. So long as you make your payments on time and in full, you will be able to start eliminating your debt surprisingly quickly, and improvements to your credit score are all but guaranteed to follow.
Watch Out For “Charged Off” Debts
If you have a debt that’s been “charged off,” it means the creditor really does not expect any more payments from you for whatever reason. On the other hand, if you come into some money and try to make a payment, the account will likely reactivate and drag your credit score down, so be careful of which debts you’re paying, especially if they’re older or there are collections agencies involved.
Try Not To Open/Close Too Many Credit Accounts
If you’re looking for a new line of credit, apply sparingly and avoid opening several new lines in a short period of time to make sure you don’t undermine your intentions. Similarly, you should also try your best not to close too many credit card accounts as well. How long you’ve had a line of credit can greatly impact your credit score, so if you absolutely must eliminate some credit, try to get rid of newer accounts and keep your old ones instead.
Other than those particular tips and tricks, paying your bills on time, paying off more than you owe each time you make a payment, and other obvious solutions can collectively go a long way in helping you improve your credit score. And just know, if you ever need auto financing quickly to get you into a reliable car as soon as possible, your bad credit will never be a problem here at Suburban Auto Finance! Apply Now to get your pre-approval so you can start car shopping our available inventory right away!