Having a decent credit score is crucial to helping you achieve your goals. However, over half of adult Americans don’t know their credit score. When an individual has bad credit, it not only affects their ability to get a personal and business loan, it can also disqualify them from certain types of jobs. Don’t let a bad credit score stop you from achieving your financial and business goals. While there is no overnight fix to less than stellar credit, there are a few tips to help boost your score.
- Find a Fix Errors On Your Report: There are a few major credit reporting agencies – Experian, Equifax, and TransUnion. If your credit score is below 550, it is considered poor and can seriously impact your ability to get a business loan. This can be frustrating if a low score comes from errors on your report. It is important to dispute any errors on your report. A recent study showed that people who disputed charges, saw an increase of 25 points on their credit scores.
- Pay Your Bills On Time: One of the quickest ways to bump up your score is to reduce personal debt, maintain long term relationships with credit entities, resist having too many lines of credit, and diversify credit types. Remember that any delinquent payments that are sent to debt collection agencies can stay on your credit for up to 7 years.
- Pay Down Balances: Keep credit card balances low. Although having credit cards helps your credit score, excessively high balances will lower it. Most credit experts suggest that balances stay between 10% and 20% of available credit.
- Don’t Close Old Credit Accounts: Keep balances on credit cards low, and avoid closing credit card accounts out. When FICO calculates your credit score, having a long standing account can affect your score by as much as 15 percent.
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