Your credit rating is very important as you approach a few big life events, such as trying to get a job with security clearance or money management responsibilities or buying a house. It’s important to do some research about how to improve your credit rating not just for these major opportunities, but so that you continue to benefit from a good credit rating throughout your life. Since you never know when you might find that dream home or job, it’s a wise idea to plan to improve your credit rating now so that you’re prepared just in case.
Here are the top four tips to help you when you need to know how to improve your credit rating.
Get Errors Removed
Lines of credit on your report due to identity theft, debts that should have come off months or years ago, or incorrect allegations about late payments can be frustrating and damaging for you. Make sure you request your credit report so you can get these errors corrected. With a little work, these mistakes being wiped can set you up for success not just now but in the future. Make this a yearly habit!
Make Sure You’ve Got Credit Lines Open in Good Standing
Even if you’re trying to pay down debts, don’t close out every account. Make sure you have at least one line open and keep it up to date. This information about on-time, regular payments can help boost your score. This is also a good approach if you don’t have a lot of credit history to begin with.
Don’t Apply for Too Many Cards
If you’re trying to get an unsecured credit card, sending out multiple applications might indicate that you’re desperate or in a bad financial situation. This doesn’t bode well for your credit report. If you really want to know how to boost your credit rating but you’re not getting approved for an unsecured card, try for a secured card to help raise your score in a responsible way.
Avoid Closing an Unused Account
If you have had a credit card for a long time but you don’t use it, think carefully before closing it out. This might decrease the available credit you have, make it look like you don’t have much of a credit history, or cause a higher credit utilization ratio on your other accounts.
Review Your Utilization
Just like requesting too many credit cards indicates that you are desperate, so too does maxing out the cards you already have. Try to keep your credit utilization ratio under 60% for all of your accounts.
If you feel like you’re in over your head- don’t sweat it. It just means it’s time to call in the big guns. To raise your credit rating quickly, consider working with Integrity Credit Solutions to get the help you need right away! A free credit strategy session could take the burden off your shoulders and get you committed to a sustainable plan. Don’t wait if you want to know how to raise your credit rating.