Do pay your bills on time.
What lenders care about, above all else, is the likelihood that you’ll pay back your debts. Doing so on time, every time, proves that you’re reliable and should boost your overall credit health. That’s why it’s important to make on-time payments on all your accounts.
That includes not only your credit card, but also your rent, utilities and even your cellphone. Late or missed payments can significantly harm your credit scores. If you have trouble keeping track of your bills, consider setting up automatic payments or payment reminders.
Of course, nobody’s perfect. If you forget or accidentally make a late payment on one of your accounts, it’s not the end of the world. Call your lender as soon as you discover the mistake and ask for forgiveness. Then pay the bill and bring the account current. We make credit repair services a priority.
Pay down your debt.
Your credit utilization ratio compares the amount of debt you owe to the amount of credit you have at your disposal. Lenders want to make sure you’re not borrowing more than you can afford to pay back. Most experts recommend keeping your overall credit card utilization below 30 percent. The easiest way to stay below that number is to pay off your credit card. A lower credit utilization ratio suggests that you can use credit responsibly, so it may be correlated with higher credit scores and better overall credit health.
Do diversify your credit mix.
Your credit mix refers to the various types of accounts included in your credit reports. While it probably won’t make or break your credit scores, lenders typically like to see a mix of revolving credit accounts (i.e. credit cards) and installment loans, such as mortgages, auto loans and student loans. The more you diversify the money you borrow, the better. Of course, it’s not a good idea to take out a loan you don’t need just for the sake of adding some extra color to your credit mix.
Don’t open too many new credit cards at the same time.
Be careful not to open too many credit cards within a short time period. Every time you apply for a credit card or loan, it generates what’s known as a hard inquiry which stays on your credit reports for about two years and may have a small negative effect on your credit scores. Too many hard inquires in a short period of time may set off a red flag for lenders, as it suggests you may be scrambling for cash or getting ready to add on a ton of debt. This doesn’t mean you should never apply for new credit. Just be sure to spread out your applications.Credit repair is essential for resolving mistakes.
Don’t close old credit cards.
The length of your credit history is a significant factor in most credit scores. Some credit scoring models may consider only the average age of all your accounts, while others may also factor in the age of your oldest open account. You risk shortening the length of your credit history by opening too many new credit cards at the same time or closing your oldest credit cards. We know it can be tempting to get rid of those old cards you no longer use, but hear us out. Closing an account doesn’t just affect the overall age of your credit history. It could also lower your available total credit and increase your credit utilization.
The best way to improve your credit health is to treat it like a long journey rather than a short race. Building credit takes time. We may crave instant gratification, but credit scores don’t work that way. They’re meant to show an overall picture of your financial health, so it makes sense that they’re not susceptible to a quick fix here and there. Our best advice? Stay patient and work on developing good habits that last. With a bit of effort, you should see your credit health improve over time.We strive on being one of the best credit repair services by putting our clients first.