Do You Know All Ways to Raise Your Credit Score?
When it comes to increasing a credit score, you’ve probably done the good citizen routine well.
You pay on time, try to raze the entire balance every month and never close too many accounts at once.
Beyond the basics, though, people don’t understand what goes into a credit score. Many consumers are still unaware of what makes their credit scores go up and down.
Consumers understand that the credit utilization ratio – the total amount of revolving credit someone uses in a month, compared to the amount of available credit they have – is a main factor in calculating a score.
But barely anybody knows that it’s often calculated from the total on the statement date, not the due date. Even if you pay balances in full every month, a card issuer may report a balance. And that can hurt your credit score.
Here are four ways you can use to boost your credit rating:
- pay bills before the statement date
If you charge a balance every month but pays it off and can’t understand why your score isn’t higher, it could be that your utilization ratio is what’s suppressing your score.
Typically, the balance as of your last statement date is the balance that will report to the bureaus. So if you pay most of the bill before the statement date, you can lower your utilization rate. And that can equal a higher credit score.
This might not work with every card though. Some lenders don’t use the balance on your statement date when they report to the bureaus.
- make multiple payments
Another way to lower the balance on your statement date is to make periodic payments throughout the month.
If you use your card throughout the week and pay it off every Friday, you’ll cut the amount of credit you’re using at any one time. Basically, the lower the balance on your credit report, the better. Check with your card issuer to learn how they handle multiple monthly payments.
- ask for a deletion
If you only have one or two bad marks on your credit record, you may be able to strike them out.
Say you’ve paid late, but have an otherwise immaculate credit history. You can ask your creditor for a deletion. It may work but only if you err rarely. And the sooner you request for deletion after the error, the better. If you get one or two of your three bad things on your credit report removed through deletion, you will be surprised how quickly your score may go up.
- pay for removal
If you have an account that’s gone into collection, sometimes collectors will agree to remove the debt from your credit report in exchange for payment.
But before you agree to pay anything, ask for the arrangement in writing. Get a letter on company letterhead that spells out they will remove the debt from all three major credit-reporting agencies.
Latest Bad Credit Card News
On the threshold of the most romantic holiday, WalletHub published the results of the so-called Valentine’s Day Spending Survey. 1,000 men and women from across the U.S. participated in the poll. The questions concerned not only the expenses and expectations before February 14, but also how the financial situation may affect a relationship. The most […]
People are seriously worried about the security of their bank accounts due to the suspicious e-mails they received this Monday. The notifications’ sender was marked as Synchrony Bank. Some of the e-mails contained information about a newly opened Amazon Credit Builder account. Others informed the customers that some transactions are proceeding between Synchrony Bank and Credit Builder accounts, and that a trial deposit had been made.
As a new online Bankrate survey of almost 2,5 thousand respondents shows, 84% of Americans face financial product denials. The bigger part of millennials (22-36 years old), namely 58%, was rejected for a credit card or another credit product at least once. The reason is their bad credit score.
The third quarter is just around the corner. And Amalgamated Bank of Chicago is ready with an attractive forthcoming rewards category that will appeal to all travel lovers. It will be recalled that ABOC credit cards come with 1x ABOC Bonus Rewards Points on all purchases. But their no annual fee Platinum Rewards Mastercard® and […]
Bad credit history sounds like a sentence for many people. But is it so? Let’s consider the issue of bad credit in more detail. Our life is unpredictable, and we never know what can happen. We are not insured against anything. However, it is important to remember that there is always a way out or […]