You may be surprised to learn that the average credit score in the United States is 711. By our standards, that’s not half bad and most credit issuers would consider a 711 score to be “Good” which qualifies borrowers for favorable terms for credit cards, cars, homes, and more.
If you’re looking at that score 711 average and feel that you’ve been left in the metaphorical dust because your score is sitting lower, don’t fret! There are several how to improve your credit score strategies you can employ today. Each of them will help you nurture your score, which will get you on track to your dreams of enjoying premier financing.
Not sure where to start when it comes to strategies to improve your credit score? Keep reading!
Below, our team shares simple and effective tips.
1. Pay Your Past-Due Debt
Being delinquent on payments is the number one cause of credit score problems. With that in mind, if you have debt that you’re past due on, prioritize paying it.
If you let debt go to collections, your score will take a huge hit that’ll take years to crawl out of. Rather than getting to that place, even if you’re struggling to pay, call your creditor and make payment arrangements.
2. Stop Applying for Credit
It can be tempting to claim new credit card offers you see online. The problem with grabbing every credit card that offers you a free bonus is that credit card applications ding your credit.
These dings are called “hard inquiries” and can remain on your report for 12 months.
As a how to improve your credit score rule of thumb, only apply for credit when you need it. Lock your credit reports when you have no intention of applying for anything near-term.
3. Scan for Issues
Credit reports are always available to consumers and can be accessed by leveraging tips you can find on this credit info site.
Once you have a copy of your credit report, look it over. If you see any marks on it that are not accurate, things like loans that were taken out or delinquent payments, call the credit agency showing the problem to get it straightened out.
By making sure you don’t have inappropriate black marks on your record, you can save your credit score from plummeting unnecessarily.
4. Keep Your Credit Usage Low
Credit trackers look at how much money you have available to you across lines of credit and how much of that money you’re using. Optimally, you’re only using a small portion of what’s allotted to you.
If you’re using a high percentage of your available credit, you’re seen as a risk and may get derogatory marks on your reports, dropping your score.
5. Be Patient
Recovering from credit damage takes time. If you’re patient and manage your credit responsibly from today forward though, your credit score will reliably build.
Believe us when we say there’s no credit disaster you can’t come back from by exercising good habits and waiting!
You Now Know How to Improve Your Credit Score
Knowing how to improve your credit score is empowering, in that it can unlock a bright financial future for you. We hope our tips help you find the financial success that you’re craving.
If you’d like more tips on how to improve your credit score quickly or other general money guidance, we welcome you to read additional financial content on our blog.