How to Get a Higher Credit Score: The Basics Explained

higher credit score

Tired of getting denied for that loan you really, really need? Then you’re in luck.

We’re going to show you how to get a higher credit score. Yes, it is possible. Furthermore, it’s a lot easier than you may think.

We’ll start by helping you understand how your credit score works in the first place. From there, we list the most urgent steps you need to take to fix your bad credit.

And don’t worry. These are effective, lasting solutions that should produce positive results very quickly. Learn what you need to know about improving your credit score right here.

How Your Credit Score Works

Your credit score is a rating of how trustworthy you are at borrowing. It’s based on your borrowing activity, such as taking out loans and paying them back.

Lenders use this rating to protect their investments. That is, they avoid lending to those with bad credit because there’s a good chance that they won’t pay back what they owe.

1. No More Late Payments

When you have overdue payments, it proves that you aren’t responsible at borrowing. Each of these late payments is very harmful to your credit score.

If this is a habit with you, figure out what you can do to stop it. For instance, set up reminders on your phone so that you pay bills on time.

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Also, you may have a lot of bills that are due at the same time. If this makes it hard to pay them all on time, see if you can change the monthly payment date for some of them.

2. Take Care of Past-Due Payments

If you have any past-due payments outstanding, pay these off first. These are continually hurting your credit score moreso than your other debts.

3. Borrow Resposnsibly

You can’t prove your ability to borrow responsibly if you stop borrowing. But you can try this. Borrow money that you know you can easily pay back.

For example, let’s say you need to replace your stove. Instead of paying in cash, you could set up a payment plan and make payments when they’re due.

4. Check For Credit Report Errors

The credit bureaus in charge of reporting your credit are far from perfect. It’s possible that your bad credit is partially due to some errors on your credit report.

Get three copies of your credit report, one from each of the three major credit bureaus, and check it out yourself. If you do find any errors, it’s possible that you can dispute them and have them removed.

5. Try a Credit Repair Company

There are even credit repair professionals that can help you improve your credit at a reasonable price. Check for reputable credit repair companies in your area to see how they can assist you.

Rememper These Tips on How to Get a Higher Credit Score

These tips aren’t only for some people. Anyone can improve their credit rating by following these steps. Also, please share this guide with anyone you know who’s wondering how to get a higher credit score.

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Next, learn some cool things to do when you’re on a budget. Or, find out how to balance fitness with finances. Read these and other awesome topics on our Lifestyle blog.