There are very many questions online on how to raise my credit score. Most of those who want to raise your credit scores want this to happen fast, and some end up being duped as they search for quick fixes. The truth is that increasing the credits core will take time, and the more complex and severe the credit challenge, the longer it will take time to fix it.
Whenever you plan to purchase something majors, such as car or home, you need to check the credit report for at least 6 months in advance, so you can know the status and how to improve it. The credit history of every individual is different and thus what needs to be done to improve the score must be customized to suit your needs.
The most important thing to know as you seek to understand how to raise my credit score is that you need to put in place measures to pay on time. Secondly, you need to review the rate at which you utilize credit.
Make payments on time:
If you have delayed in repaying the loan in the past, you need to reorganize your finances and ensure that you make payments on time and bring all your accounts to current and up to date status. Any late fee will remain and show on your credit report for the next seven years from the date you make the payment. Recent delays in payments will tend to lower the credit score further.
If there are accounts in your credit report which are currently past their due date, you should bring them to current status as the very first step in rebuilding your credit. From then onwards, you will need to ensure that you make payments on time. The payment history plays an essential role in defining your credit score and may account for as high as 35% of the final credit score.
Keep balances low:
Also known as the balance to limit ratio, credit utilization rate is a term used to refer to balances on balances on an individual credit card accounts. To get the credit card utilization, you need to divide your total credit card balances by the total of all the credit card limits. To raise the credit score, keep as low as possible the lances on your credit cards, and most importantly, ensure you pay them every month.
The general rule on the thumb in this regard is that the credit utilization rate should not exceed 30% for any single credit card or all of them. A lower card utilization rate is better for raising credit score.