There are times when a high credit score can pay you like anything. If you are thinking to buy an expensive Smartphone or need a credit card with a high credit limit then a good credit score can make things easy for you. However, it is easier said than done to recover from bad credit history and get approval for the credit products.
So, if you wondering how I can fix my credit score and what can be done to keep my credit score healthy then here are a few smart ways to boost your credit score:
• Find when your credit card company is reporting your payment history:
You should call your credit card company to inquire when they report balance to the credit bureaus.
The date they report the balance is the closing date or the last day of your billing cycle and you need to check on your statement and find out that whether it is the same as the due date or not.
Another thing is the credit utilization ration and you should have it less than 30 percent (overall on all the cards).
If you thinking about how can I boost my credit score quickly then it will be best if you keep the ratio under ten percent on each card. Let’s learn with an example:
The credit utilization ratio is the used credit amount compared with the available credit amount. For example on the first card your credit limit is #5000 and balance on the card is #1000 so the utilization ratio is 1000/5000 =20% and this is high but on the second card you have a credit limit of 5000 and your balance is 500 then the credit utilization ratio is 500/5000= 10% and this is amazing.
Now we will check overall. 1500/10000 = 15% and this is very good.
So, here is one issue. Even if you are paying the balance every month but the payment is received after the reporting date then the reported balance can be high and this negatively impacts the score. Therefore, you must pay the bill before the closing date and the balance reported to the credit bureaus will then be lower and sometimes even zero. So, when the credit utilization ratio is zero then it will boost your score. So, the next time you think how can I boost my credit score then try implementing this and you will see good results.
• Strategically paying your debts:
Now, let’s consider the above example to understand this. On the first card, the credit utilization ratio is 20% and on the second one, it is 10% so you should pay off the balance of the first card as the balance is high on it. So, the new ratio will be more impressive and you can boost your credit score with this tactic every month.
• Make payments two times before the closing date if you buying something very expensive:
Suppose you decide to buy expensive items using your credit card and this can affect your credit utilization ratio. So, now you know your closing date and to get rid of hefty charges and bills and the bad impact on credit score you must make one payment earlier than the closing date. Then you can make another payment just near the closing date.
Remember if you are planning to buy something very expensive on your card and planning to carry a balance then do not purchase something very costly like an oven. It is because the compound interest will add up and you should use credit cards for long term loans unless the card has a zero percent introductory APR on purchases. Still, try to make the payment before the closing date.
• Help from credit repair company:
If you have not this in the past and pondering on how to fix my credit score that is already gone very low, then taking help from a credit repair company is not a problem. There can be negative items on the credit reports which may need fixing, and inaccuracies are very common in the report. Keeping the above-mentioned things in mind while using a credit card can help but to rectify the overall credit report you may need the assistance of experts.
Conclusion: These are a few smart ways to fix your credit score, but if your credit score has gone low and you have filed for bankruptcy, then taking the help of a credit repair company is important. They can assist and guide you on how to improve the credit score and will dispute the negative items on the report. Those who have filed for bankruptcy can also get assistance for boosting their credit score.