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

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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!

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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

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Financial mistakes that finally catch up with us

The current generation of young professionals is exposed to such a fast moving world that time never seems to be a factor that will eventually catch up with us. Many young people are making serious financial mistakes and while it may seem like innocent youthfulness, the effects can be long lasting and catastrophic. If you would like to have a good credit score, these are the things to observe;

Live within your means

Everybody wants a good life and in most cases this comes at an extravagant cost. Many young people are willing to get into debt so as to finance expensive lifestyles and live their dream. There is definitely no harm in that but if you are always in debt; what is a good credit rating score will be quite elusive. Constant debt could at times mean being unable to pay them and it could hurt your credit score because instead of servicing debt, focus is on maintaining a social class.

Go through the fine print

Get information about credit facilities you plan on taking to avoid frustrations and disappointments. Every loan or credit facility has repercussions especially in the event of defaulted payments. The only weapon you have as a consumer taking a loan is the terms and conditions but unfortunately, most people either rush over or do not read them. It can take quite a while to go through everything but if you do not do it, a perfectly good credit score could be at risk.

Every financial mistake made today causes a ripple effect that could be felt for years or even a lifetime. A good credit score might not seem important now but you might need it later. What is a good credit rating score? It is a result of financial discipline.

Related Source: Facebook Can Build or Break Creditworthiness

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The Basics on How to Build Good Credit

Summary: The longer you keep an account open, the better it is for what score is good credit. Ensure you keep an old account open since this will help in how to build good credit by increasing the age of the account. Closing an old account won’t remove it from your report immediately until after about seven years.

It is very important to understand how to build good credit to make it easy to buy a home, finance education and get a dream job which cannot be achieved with a bad score. Right from the first credit card, everything you do will show up in the history. In order to get what score is good credit, here are few steps which can help you use credit responsibly:

1. Get a loan you can afford

When you get used to charging only the specific amount you can afford, this will give lenders a clear picture that you are a very responsible borrower. It will be easier for you to borrow money and get new credit because this will show an understanding of how to build good credit considering the fact that you only take an amount you can pay back. This will also help you avoid excess debt due. Loan are also seen the same way, it’s advisable to only go for a specific amount that you can easily pay off irrespective of what the lender says you can get. Make sure you analyze your budget to know what you can afford every month to ensure you are on tract on how to build good credit.

2. Use only a portion of your available credit

Using up your credit card or most of it will not help in how to build good credit score. It also makes it difficult to pay off the whole balance at the end of the month. Lenders will see individuals who max out their cards as irresponsible with lack of understanding of what score is good credit score. To get how to build good credit, it is advisable to stay below 30% of the given limit.

3. Begin with just one card

So many people could go on to get so many cards within the first few years of using credit. Try as much as possible not to follow that step which will not help in how to build good credit. The more cards you have available, the hard it will be to make monthly payments of your balance. It should also be noted that too many inquiries and too many new credit can affect what score is good credit. Start with just one card and try to be responsible with it before going for another will help you understand how to build good credit.

4. Ensure you make full payment every month

If you focus on charging only the specific amount you can afford, paying in full every month will not be an issue and the will help in how to build good credit. Paying off this balance regularly every month will show lenders that you are capable of paying bills. This is due to the fact that how to build good credit is dependent on the timeliness of your payment which will determine what score is good credit.

Related Resource: How to Get Good Credit Using Credit Cards Good Credit

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How a Cellphone Can Influence Your Good Credit Score

Summary: In all, always make sure you pay your bills on time or else you may find yourself without a working cell phone and a lower score. Regardless of how you decide to pay your cell phone bill, remember to pay your bill on time and in full to avoid fees, charges, and damage to your score.

After paying for a roof over your head, keeping the lights constantly on, a cellphone bill and a device that comes with it is most likely going to be the next thing on the list of top necessary monthly expense.

Here not all bills are the same especially when it can influence your good credit score. Unlike some monthly expenses, like your mortgage or a car payment, paying your cell phone bill can affect your credit in a different way. In the first place you most likely need a good credit score to get a cellphone but the manner in which your cell phone bill is paid for could either hurt your score or not affect it in any way.

Missing a Cellphone Payment

Like every other bill, if you miss a payment or you are not fast about settling your bill, this will greatly affect your good credit score. Some cellphone companies might decide to switch off your service when there is a delay in your payment. But considering the fact that you don’t have a working cellphone, you still carry an outstanding cellphone bill which is unpaid for. Beyond just shutting off your service, you cellphone company will go ahead and report your missing payments to the bureaus and will send your debt to the collection agency which will greatly harm your good credit score range. Any account that has gone as far as that could be pending on your report for as long as seven years.

Paying a Cell phone Bill on Time

It’s normal to assume that paying your cellphone bill on time will boost your good credit score if missing your cellphone bill will reduce your good credit score. But the truth is if you are just paying your cellphone bills directly each month with cash, check or directly deducting it from your account automatically, it won’t have any impact on your good credit score. As long as the cellphone company has not extending any line of credit, your timely payment will not be report to the bureau.

Paying a Cell phone Bill on Time Using a secured Card

In a situation where by you don’t want to link your cellphone bill to your credit card or you do not have enough credit to get a credit card, here is an alternative way that will help you improve your good credit score. It is known the secured card. Just like a debit card, the amount of money you can charge to your secured card is limited to the exact amount which you out down on your card. . If you don’t qualify for a traditional credit card, it’s significantly easier to qualify for a secured card at a bank or union. And the issuer will report your secured card to the card bureaus, which means you are building history by paying your cell phone bill.

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Reasons to Check Your Good Credit Report

Summary: When creditors report to the bureaus, there is always a chance that they might make a mistake in the data they send which will later be reflected in your report. By being mindful of this when reviewing your report, you can make sure that these errors are corrected before it's too late.

A lot of people ask why they should always review their good credit report. It is widely believed that this is only for who want to get mortgage a loan or some kind of credit. But the truth apart from the fact that your good credit report is a source of information to determine your creditworthiness; it is also needed for you to review and to ensure that no mistake was made in the report that could mislead lenders or other people requesting your report. This will also have a big impact in your good credit score. Considering the fact that this result is uploaded by people, a lot of mistakes could be made. Certain information could be omitted or there could be a conflict in the information provided which will make it not 100% accurate. Here are some reasons why you should review your good credit report:

Prevention of Identity Theft

When you review your good credit report regularly, you could always ensure that no other account which is not yours have been included in your name and there is no unauthorized transaction attached to your active account. Any new account that is opened using your name without your approval is the first sign of identity theft. This could lead to a disastrous result because you will be held responsible for any accumulated debt in that name. You could also monitor your sending to be sure you are not pilling up debt in any of your accounts.

To Detect Credit Bureau Error

The information available in bureaus is gotten from your records by people and not machines. Considering the fact that those who do this are people and not machines, errors are bound to be found either in a number, a letter, or something of the sort, for example, maybe the person who transcribed your report wrote 1,000 instead of 10,000, which in reality would make a huge difference to what is being reported.

To ensure your Data is Complete in all Three Bureaus

This is very important considering the fact that the three main bureaus in the US which are Equifax, Experian and TransUnion don’t share information. So if you notice when reviewing your good credit report that one or even two of the bureaus are missing some information that was stated in the report from another bureau, report it immediately in order for your good credit report to be updated and to include that data. Sometimes it may also be the case that some negative information is added to only one or two of your good credit reports and which you might not notice if you only check your report from one of the three bureaus.

Related Source: How to Calculate Good Credit Score

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Reasons to Check Your Good Credit Report

Summary: When creditors report to the bureaus, there is always a chance that they might make a mistake in the data they send which will later be reflected in your report. By being mindful of this when reviewing your report, you can make sure that these errors are corrected before it's too late.

A lot of people ask why they should always review their good credit report. It is widely believed that this is only for who want to get mortgage a loan or some kind of credit. But the truth apart from the fact that your good credit report is a source of information to determine your creditworthiness; it is also needed for you to review and to ensure that no mistake was made in the report that could mislead lenders or other people requesting your report. This will also have a big impact in your good credit score. Considering the fact that this result is uploaded by people, a lot of mistakes could be made. Certain information could be omitted or there could be a conflict in the information provided which will make it not 100% accurate. Here are some reasons why you should review your good credit report:

Prevention of Identity Theft

When you review your good credit report regularly, you could always ensure that no other account which is not yours have been included in your name and there is no unauthorized transaction attached to your active account. Any new account that is opened using your name without your approval is the first sign of identity theft. This could lead to a disastrous result because you will be held responsible for any accumulated debt in that name. You could also monitor your sending to be sure you are not pilling up debt in any of your accounts.

To Detect Credit Bureau Error

The information available in bureaus is gotten from your records by people and not machines. Considering the fact that those who do this are people and not machines, errors are bound to be found either in a number, a letter, or something of the sort, for example, maybe the person who transcribed your report wrote 1,000 instead of 10,000, which in reality would make a huge difference to what is being reported.

To ensure your Data is Complete in all Three Bureaus

This is very important considering the fact that the three main bureaus in the US which are Equifax, Experian and TransUnion don’t share information. So if you notice when reviewing your good credit report that one or even two of the bureaus are missing some information that was stated in the report from another bureau, report it immediately in order for your good credit report to be updated and to include that data. Sometimes it may also be the case that some negative information is added to only one or two of your good credit reports and which you might not notice if you only check your report from one of the three bureaus.

Related Source: How to Calculate Good Credit Score

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