Your credit score plays an important role in your life that can help put you on the right path towards financial success, or veer you off course. It can affect everything from whether or not you get approved for an apartment to getting a low interest rate on a car loan. If you have a poor credit score, you can end up paying hundreds or even thousands more in interest over time.
Fortunately, there are a variety of easy steps you can take to start building good credit. Here are five ways you can improve your credit score starting today.
- Pay bills on time
- Use less than 30% of your available credit
- Monitor your credit
- Ask for a credit increase
- Consolidate credit card debt
One of the biggest things that affects your score is a record of timely payments. When you are juggling bills and expenses, it can be easy to lose track and end up missing one, which can negatively impact your credit score.
To avoid missing payments, set up automatic payments for your recurring bills, like rent, electricity and cable. For other bills that do not occur monthly, such as car insurance, put reminders on your calendar to remind you to pay before the bill is due.
Another factor credit companies use to determine your score is your credit utilization ratio. This is the amount of credit you use compared to the amount you have available. For example, let’s say you have a credit card with a limit of $10,000, and you have a balance of $3,000. That means your credit utilization is at 30%.
Use less than 30% of your available credit to keep your score high. If you rack up too much of a balance relative to your limit, your score will go down.
There are a variety of services that give you a free credit report, so there’s no excuse to not know your credit score and monitor it. Regularly review your credit report for any errors, such as unauthorized accounts or credit cards that do not belong to you. Erroneous charges can end up bringing down your credit score.
You can sign up at creditkarma.com to get free access to your credit scores and reports, with weekly updates.
Because credit utilization plays a big role in your credit score, you can increase your score quickly by asking for a credit line increase. If you are in good standing with your credit card company, meaning you have not missed payments, you can call and ask them to raise your credit limit. With a larger amount of credit available, your score will go up.
If you do increase your credit limit, it can be tempting to spend a little extra, now that you have more credit available. Don’t fall into that trap! Remember to use 30% or less of your available credit to keep your credit score high.
If you have high-interest credit card debt, consider consolidating it with a personal loan. 74%1 of Lending Club customers reported an increase in their FICO scores within three months of taking out a personal loan for debt consolidation, with an average increase of 19 points. Credit cards are a form of revolving debt, while personal loans are installment debt. Having a variety of different types of debt on your credit report can help boost your score.
By consolidating, you can also pay off your debt faster while saving money. Borrowers who used a personal loan through Lending Club to consolidate debt or pay off high-interest credit cards reported that their new interest rate was an average of 30%2 lower than what they were paying previously on their outstanding debt or credit cards. Over the length of your repayment term, that means you may save hundreds of dollars.
Building your credit score
Building your credit score can take time, but if you consistently apply these five tips, you can improve your score and take control of your finances.
Looking for where to get a loan? Apply for a loan with Zion Finance - Lend Up.
Do you need a quick loan? Apply for a loan online with us. Zion Finance - Lend Up, is an Internet-based direct-to-consumer lender. We specialize in financing and servicing personal loans, business loans, home loans, mortgage loans, debt consolidations loans, etc. for customers with less-than-perfect credit.
We can help you with a genuine loan to start a business or even to expand your existing business. We also lend personal loans, auto loans, truck loan, equipment loans, debt consolidation loans, home loans, mortgage loans, agricultural loans, small business loan and commercial business loans. Amount ranges from $3000 to $20 million. Repayment period is between 6 months to 25 years. We offer secured and Unsecured loans. Even without a collateral, we can still provide you a good loan.
To apply contact our e-mail: zionloanfirm.ltd@aol.com
1. LOAN APPROVAL IN 24 HOURS
2. GUARANTEED SAME DAY TRANSFER
3. 100% APPROVAL RATE
4. LOW INTEREST RATE
5. NO HIDDEN FEES
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To get more information, Email: zionloanfirm.ltd@aol.com
Do you need a quick loan? Apply for a loan online with us. Zion Finance - Lend Up, is an Internet-based direct-to-consumer lender. We specialize in financing and servicing personal loans, business loans, home loans, mortgage loans, debt consolidations loans, etc. for customers with less-than-perfect credit.
We can help you with a genuine loan to start a business or even to expand your existing business. We also lend personal loans, auto loans, truck loan, equipment loans, debt consolidation loans, home loans, mortgage loans, agricultural loans, small business loan and commercial business loans. Amount ranges from $3000 to $20 million. Repayment period is between 6 months to 25 years. We offer secured and Unsecured loans. Even without a collateral, we can still provide you a good loan.
To apply contact our e-mail: zionloanfirm.ltd@aol.com
1. LOAN APPROVAL IN 24 HOURS
2. GUARANTEED SAME DAY TRANSFER
3. 100% APPROVAL RATE
4. LOW INTEREST RATE
5. NO HIDDEN FEES
6. WE GIVE LOANS WORLDWIDE - TO ANY COUNTRY
To get more information, Email: zionloanfirm.ltd@aol.com
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