Methods of Increasing Your Credit Score
Your credit score is a very important number for you to maintain, especially if you are thinking about making a large purchase, such as buying a home or an automobile. If you have a poor credit score, you will not be approved for the loans necessary to buy these items. It is important for you to know how credit scores work, what affects them, and what you can do to improve your own, personal score.
Your credit score is a three-digit number that indicates to creditors and lending agencies how credit-worthy you are. Your outstanding debts, late payment history, length of credit history, recent credit, and current credit are all factored into your credit score. Therefore, changing your habits in these five areas will alter your credit score.
One of the most effective methods of improving your credit score is to ensure that you are sending in all of your payments on time. If you have accrued debt, then pay it down and keep these balances low – below 30% of your credit limit is a good amount. If you notice any errors – for example, incorrect limits listed or incorrect, late payments – then they should be cleared up right away with your credit agency. These mistakes can seriously hurt your credit score.
By taking these steps, you should be able to increase and maintain your credit score at a high level.
If you would like to learn more about improving your credit score or about filing for bankruptcy, then Birmingham bankruptcy lawyer Paula Greenway can help. To schedule a free initial consultation, contact her today by calling (205) 324-4000.