How to Improve Your Credit Score in Six Easy Steps

Are you suffering from a low credit score? It doesn’t take a financial expert to know that poor credit can hinder you from getting a personal loan, automobile loan, and a home loan. This is the primary reason why you should take your credit score seriously.

If it’s time for you to turn things around, you need to take the correct steps that will help you raise your score. Contrary to popular belief, you don’t usually need to pay a credit repair professional. We will now take a close look at six easy steps that will raise your credit score within several weeks or months.


1. Determine Where You Stand

Your first step begins with you getting a copy of your credit report from the three major credit bureaus (Equifax, Experian, and TransUnion). You can also try free credit reporting apps like Credit Sesame or Credit Karma. Looking at your credit report will help you determine where you stand. You will get an opportunity to see the things that are affecting your credit score. There is a possibility that you may find one or several mistakes on your credit file.

2. Dispute Errors

Did you find any errors on your credit report? If you did, it’s time for you to dispute them. Simply send a dispute letter to the credit bureaus mentioned above. They will usually be more than happy to remove them.

3. Get a New Credit Card

You should apply for a new credit card when you can. Opening a new line of credit will gradually improve your credit score. Apply for an unsecured credit card or a secured credit card. With an unsecured credit card, you will be borrowing the lender’s money. With a secured credit card, you will be borrowing against your money. Make certain you use your new credit card responsibly.


4. Keep Your Utilization Rate Low

Once you have a new line of credit, you should keep your utilization rate low. Studies show that credit bureaus favor consumers with low utilization rates. Aim at keeping your utilization rate in the 20-25% range.

5. Pay Off Outstanding Balances

Negative marks on your credit file have a big impact on your credit rating. This is why it’s vital to pay off your outstanding balances listed on your credit report. Make an earnest effort to negotiate with your creditor(s) if you cannot pay off the full balance.

6. Become an Authorized User

Do you know someone with exceptional credit? Ask if you could become an authorized user on one of their accounts. Their positive activity will increase your credit score.


You don’t have to suffer from a low credit score. The six steps above can help you improve your own with ease. It’s now time for you to take action.

Website: https://goodcredit.com/

Reference: https://www.goodcredit.com/blog/how-to-improve-your-credit-score-in-six-easy-steps

Read More

What is a Good Credit Score to Have?

Meta Description: The answer to what is a good credit score is pretty simple. Find out today what you can do to change your life!

If you've ever asked yourself what is a good credit score and never got the answer, you can relax, because over thousands of Americans have the exact same problem when in reality, the answer to this problem can be just a number, or maybe a little more complicated.

There are many types of tests that lenders use in order to give you a score but we're going to research the most common one, the FICO, or the Fair Isaac Credit Score Scale. 

However, when did this madness with credit scores begin? Well, partly because of the heavy advertising on the TV and partly because people learnt about this term from magazines, most individuals worldwide want to find out more about what a good credit score is. 

Not long ago, just a few years, only bankers and lenders were familiar with this term, but nowadays more and more ordinary people know a lot about good credits. 

To start with, there are three big credit bureaus in America, Equifax, TransUnion and Experian. All of these use different scoring methods and give each individual a credit report. Although the results might vary, the differences won't be big and they will other reflect one of three things: the customer is awesome, the customer is mediocre and the customer doesn't pay his/her debts.

The FICO scale ranges from 350 to 850. A good credit score for this kind of scale will be anywhere above 760. That sounds pretty high and pretty hard to achieve, but through hard work and attention you are destined to success. A person with this score will be eligible for the lowest interest rates as well as the lowest monthly payments possible. 

There are many factors that determine your credit score but I'm not going to make you understand all that information now, take things step by step. 
The credit score is determined by your credit's report made by either of the three bureaus. After your lender has read it and decided upon your score, he can say whether you're worthy for a loan or not. 

Remember, scores below 650 are considered risks and banks, as well as different lenders don't take any kind of risks, as small as they can be because they can't afford to lose money. 

Begin the process of learning what a good credit score is and how to fix it (if needed) or maintain it high and to do so, you can go ahead and read our other articles. 

Also, pay attention to the information provided because some may be outdated or just incorrect and a mistake is pretty common due to the fact that employers have to spend hours checking these files and they might miss some things. Point is, always check your credit reports.

Read More

What is a Good Credit Score?

Meta description: Is your credit score good enough to keep asking for loans? Find out now!

Nowadays, it's so hard to qualify for a loan. There are several requirements that you have to meet in order to be able to ask for yet another loan. What's more, the majority of people have no clue what a good credit score is. Most of them didn't even know the fact that a credit score exists.

In any case, this is your chance to learn. A credit score is ranged between 300 and 850 and is calculated on several factors. If you have 850 on your credit score you will be able to ask for any loans, anytime and get them on the spot because it means you are the perfect client. 

However, as that is very hard to achieve and we are all humans and make mistakes, a good score starts from 670. Scores that are lower than that will probably have a hard time getting loans.

There are five crucial factors which determine your credit score and they are pretty simple to follow, actually. Read these points carefully so you can have a broad idea of what is good credit score looks like.

1. Payment History (35% of your credit score)

This is one of the most important factors. Do you pay your bills on time? It's crucial that you do because if you didn't pay all of your credits on time, you'd have to pay them timely for the next two years in order to have the perfect score. 

Did you know that missing a payment by 30-days can reduce your credit score by 20 points? That's extremely significant if you are looking to make constant loans.

Try not to overextend yourself and say things like "I can pay that tomorrow" because each passing day of lateness are more points deducted from your credit score.

2. Amount Owned (30% of your credit score)

This is basically calculating your credit balance against your high credit limit. For example, if you have a $5,000 credit limit, if you keep your debt below $500 you will be in the 10% range of available credit, which really is great.

Going with the same example of $5,000, you can go ahead and divide it by 10. You'd usually want to pay your balance below this price, in this case, less than $500. 

3. Length of Credit Accounts (15% of your score)

The title speaks for itself. The older your credit account is, the better. Our advice is that you keep your credit cards opened, even if you don't use them anymore, but don't forget to use them at least once every six months.

Remember, credit accounts with 15-20 year history are more powerful than newly opened accounts.

4. Amount of New Credit Accounts (10% of your score)

Don't buy too many credit cards at a time because that might raise suspicions for the bank. Try to go with a small line of credit cards and just build from there. Don't buy, for example, ten credit cards a time.

5. Type of Credit Used (10% of your score)

It's to your advantage if you have more credit cards of different types because they will add to your score!

This is exactly how your credit score is calculated and remember, a good credit score is between 670 to 850!

Read More

Why It Is Important To Know How Good Your Credit Score Is?

There are a lot of factors that determine your credit score. Your credit score is incredibly important in regards with your loans. To have a better understanding, if you have an amazing credit score, you will be able to loan more money much faster. However, what is a good credit score and how is it calculated?

Well, a credit score is generally split in 3 categories:

- A High Credit Score

- A Middle Credit Score

- A Low Credit Score

Let's take it from the bottom to the top. So, if your credit score is low, it is pretty clear that loaners will be incredibly cautious when lending money and that you won't be able to loan as much as you'd want. Or, if you're unlucky or if your score is way too low, you may not even be allowed to take any sort of loan, no matter to which bank you're going to.

If your credit score is middle, you're together with the majority of the people that usually don't ask for a lot of loans but are faithful clients that always pay their debts. Therefore, you will be able to ask for loans that are even average-high.

Credit scores are composed of a varying degree of numbers, anywhere from 300-850. A score is comprised of a scope of variables. A quick look at the payment history consists of thirty-five percent of the score. Watching the sum a person owes is thirty percent. The credit history longevity is fifteen percent of the score. New spending information makes ten percent. Consideration of the different sorts of credit utilized is the remaining ten percent of the score number.

Amazing credit is a score of 760 or above. Very good credit is a notch beneath 700 to 759 score. A good score falls in the scope of 680-699. An alright score is 620-679. A fair or so-so number is summed up in the 580-619 section. On the off chance that a score lies in the 300-579 area, the score is considered poor.

It is significant to the one needing credit to study their report thoroughly six to twelve months before applying for a major loan. In checking the report and seeing the score, you can search for any errors and ensure points of interest are listed correctly. This time frame permits a credit seeker the chance to begin a process of making corrections where required if errors were found. In the event that errors still show on the report when applying for a large loan, you must tell the bank of these mistakes.

There is also the chance to increase one's credit score. This should be possible in making sure that monies owed are routinely paid and decreasing extraordinary account balances. Since timeliness of payment is noted on every report, it is imperative to make payments on time. It would be in the borrower's best enthusiasm to not take on new debt.

So basically if you have an alright score or above, you're almost guaranteed to have good deals and be able to make as many loans as you may wish to, no matter the price you're asking for.

Therefore, always be careful of your credit score before asking for a loan, as you may get turned out very fast and the bank will surely remember you. That's why, you have to thoroughly study your bank credit score as good as you can and try to repair it, if needed.

Read More

Reasons Not To Pay Taxes With A Credit Card

Everybody must pay taxes to the IRS at the end of the year; unless of course you can prove that you never received any income during that period. Even though paying taxes is a duty for all citizens, there are times when this liability will come knocking when you are not financially prepared. If your returns indicate that you owe money to the government in form of taxes, you must meet this obligation otherwise you may face legal action and in addition, ruin your good credit. When you have maintained a good credit history for a while, your credit card company might increase your limit and this means you can use the card for almost all expenses including paying the taxman. Before you use your credit card to pay tax and ruin what is a good credit rating score, think about;

The money that tax payment processors will deduct from your card to pay themselves is an expense to you. The IRS appoints collectors to act as contact points for people wishing to pay tax through digital means and these appointees are paid by the tax payer. This fee will be deducted from the credit card limit and hence increase the utilization.

You want to be in the good side of the law by paying your taxes promptly but if you use a credit card, it is easy to underpay. Did you know that an underpayment of your taxes accrues interest charged at different rates every quarter? You may be trying to save face by paying your taxes with a convenient credit card to get good credit but what is a good credit rating score can only be achieved by avoiding it completely.

Related Source: Why Paying College Tuition With A Credit Card Is Unwise

Facebook: https://www.facebook.com/creditgoodcom

Twitter: https://twitter.com/creditgoodcom

Read More

Preparing Your Credit Card for Use Abroad

Travelling abroad is rather exciting despite the purpose of the trip. The local cuisine, and experience of new cultures, hotel living and new sites to see are all aspects to look forward to. For security reasons, most people would rather travel with credit cards instead of cash and this is not only convenient but practical. If you have been looking for ways on how to build good credit, then this is how you need to prepare;

Alert your credit card company of your travel plans by making it clear how long you will be away and where you are going. You are aiming to achieve what is considered a good credit score but this will not happen if you have no access to the card. Credit card companies are ever on the look-out for suspicious card activity and one of the reasons that could lead a card to be flagged is use abroad.

Travelling to a new place should always be a security concern. We all know that you cannot be too careful when guarding your belonging that is why it is important to know who to call in case of an emergency. Being able to cancel your card can be quite helpful in your bid to achieve what is considered a good credit score because it will stop unauthorized purchases or withdrawals.

Travelling confidently is possible by taking into account all the necessary measures of how to build good credit. Steps such as carrying a separate card for back up and opting for a chip and pin instead of a magnetic strip card are sure ways to have peace of mind while on travel. You can also opt to carry a little cash and have a relative wire more as you need it if you wish not to use cards.

Related Source: How to Achieve Financial Freedom by Improving Personal Credit

Read More

Making Maximum Use of Your Credit Card

If you have a bank account, chances are, that you been contacted by the credit card division of your bank to get a credit card. Any financial advisor will tell you to shop for the best credit cards for good credit and while this is just the first step, the next most crucial step to having a credit card is maintaining what is a good credit score number. If you use your credit card to pay for all your bills, it might be a bit of challenge keeping up with your score. Here is how the best credit cards for good credit can work to your advantage;

Use your card for major purchases – have you been thinking of remodeling your home or buying building materials for a large home project? Using a credit card is the surest way to control the overall amount of money you will send on the project. Apply for low interest best credit cards for good credit so that even after paying off the debt, the cost of the project is favorable.

Pay emergency bills with your card – we all want to have an emergency fund set aside to cover us on a rainy day but saving is a challenge for most people. The alternative to using your savings to cater for an emergency is taking a credit facility. Using a credit card comes in handy because it is an instant access to cash and if you had shopped for the best credit cards for good credit, the interest owed will be minimal.

Carry a credit card when unsure of your safety - a credit card is easy to conceal and hence the best alternative to cash when travelling or paying bills at an unfamiliar location. If you decide to carry your credit card along with you most of the time, carry your lenders contact details just in case your card is lost and you need to cancel it to maintain what is a good credit score number.

Related Source: Save Your Credit by Ditching the Credit Card

Read More