Generally speaking, lenders consider a credit score of around 700 to be excellent. Still, you have to score 750 or higher to earn the greatest interest rates on credit cards and loans. Although it will take time and effort to get from 700 to 750, these techniques will help you to reach it.
Look at your credit report. Getting credit reports from the three main credit bureaus—Equifax, Experian, and TransUnion—opens the first path. Go over the report carefully and question any of the outdated or erroneous material. Errors might lower your score, hence this can help you.
Pay Down Balances Credit utilization ratio is one of the most important components of credit score. This reveals the percentage of your total credit limit that are currently being employed. It is better to keep this below 30 percent according to financial gurus. Reduce credit card balances and other types of revolving credit to maintain a low credit utilization ratio. At a certain point, getting balances below 10 percent of the limit can help scores.
Always Ensure All Bills Are Paid As And When They Are Due This is one of the reasons why credit scores are calculated since payment history is an important aspect of credit scores. Missed payments of any sort can decrease scores dramatically, even if it is only one time. Schedule payments or receive payment alerts so that all bills are paid before their due date. Pay off any outstanding balances and make timely payments thereafter.
Limit New Credit Applications Each time you apply for a new account or credit, the credit reporting agency receives an inquiry from your credit. Excessive inquiries within a short period can negatively affect scores for a while. It is advisable to wait for one of the deferment periods before making a subsequent application to get the best outcomes. Moreover, do not shut down old credit accounts as the length of credit history also increases scores.
Correct Any Report Errors However, it should be noted that some mistakes can be made even on credit reports. If you realize errors when verifying your reports, dispute the same with the bureaus as soon as possible. To support the dispute, present the necessary papers. The credit bureaus are required to investigate the dispute within the next thirty days. You can also use goodwill letters to creditors to have the negatives removed if perhaps medical issues were the cause of credit glitches.
Enroll in Credit Monitoring Use credit monitoring services or applications offered by your bank or a free credit monitoring service such as Credit Karma. These track changes to your credit scores and notify you in case of any change. Monitoring enables you to track your credit by ensuring that you are constantly checking on all three credit reports and scores. It is advisable to address any problems that will affect your scores right from the start.
Improve Credit Mix A good thing about credit is that it is not required that you have different types of credit to gain better scores. It is advisable to have at least 3 active credit cards apart from other long-term credits such as auto or home loans. This is important to show the credit card company that you can handle different types of credit.
Become an Authorized User If you are made an authorized user on a credit card by someone with good credit, then their credit score will be of help to you. They are reported to the credit reporting agencies and because they have been paying their bills on time, it boosts their credit scores. Just ensure that they always make their payments on time so that no negative entries are linked to your credit file. Do not have an authorized user status on cards that have a poor repayment history.
Dispute Errors with Creditors If you have errors in your credit reports resulting from credit account reporting errors, you should dispute the errors with the creditors. Document and follow up often. Creditors have the responsibility to search for and rectify negative information that is bringing down your credit scores. Corrections of reporting errors can give you a good boost to your grades.
Be Patient It is not easy to increase your credit score by 50 points and above; it requires commitment and a lot of effort. It also requires time to correct credit reports, add positive information, and wait for time to improve the scores. Review scores occasionally, after approximately every three months, to assess the progress. The idea is that you should be able to get that 750 credit score gradually if you keep on doing the right things.
The most significant are waiting for some time after applying for credit or making some mistakes, always paying on time, avoiding credit card usage, and correcting the information if necessary. Maintaining responsible credit practices will help you achieve your goal of moving from a 700 credit score to a 750 credit score. Be positive, take the initiative, and check your credit reports and you’ll achieve your goal.
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