Improve Your Credit Score: High-Tech and Low-Tech Methods
Improve your credit score! Whether you’re addicted to high-tech smartphones or barely using email, here are some daily tips you can implement. These routine practices will boost your credit score to the top of the charts:
1: Make sure your credit report is correct. If your credit score is calculated from incorrect information, you may be suffering greatly. It is estimated that 25% of credit reports contain some type of error.
High Tech Mode – You can request a copy of your credit report from annualcreditreport.com once every 12 months at no charge. This website is provided by the 3 major credit bureaus. Checking your credit report is a great way to catch any mistakes before they damage your credit.
Low-tech mode – You can request your credit report by phone or by mail. By phone: Call 1-877-322-8228 and you will go through a simple verification process. Your report will be mailed to you within 2-3 weeks. By mail; Download and complete the application form (available on the website) and mail it to the Annual Credit Report Request Service
POST. Box 105281
Atlanta, GA 30348-5281
Your report will be delivered in 2-3 weeks.
2: Pay your bills on time. Payment history is 35% of your credit score, so paying your bills on time should be a priority.
High Tech Mode – Technicians have many application options that can be used to track expenses and pay bills. mint and pageonce are 2 of the many applications that can set up all your invoices in one place. These apps remind you when bills are due, keep track of expenses, and more.
Another way to ensure you don’t miss any payments is to set up automatic payments from your online banking to your mortgage, auto, and credit card providers. This will ensure that you don’t rack up late payments, which can affect your credit score.
Low Tech Mode: If you are still walking to the mailbox to receive your bills, implement this practice; Pay your bills the day they arrive. This may seem a bit harsh, however paying them when you receive them has its benefits. The bill won’t have a chance to get lost in your desk pile, AND you won’t have to think about it anymore.
Another low-tech option is to have a desk calendar that has all of your monthly bills marked on the date they are due in the mail (not the due date). Post the calendar in a place where you can see it every day, so the expiration date doesn’t slip away.
3: Keep Your Credit Card Balance Low – Behind paying bills on time, account balances are the biggest factor in your credit score (30%). Running those credit card balances close to the limit has a dramatically negative impact on your credit score. Don’t let this happen to you!
High-tech way; as mentioned in n. # 1, there are many apps that can help you keep track of your spending and budget. By following a budget, you can see where your money is going and plan for larger expenses (new furniture, vacations, etc.) without reloading your plastic.
Low-tech mode: get a pen and paper and budget. Track your spending to make sure you know where your money is going. Open all your credit card statements the day you receive them and do your best to pay off your balances each month.
Hi-tech and low-tech tip: While responsible use of credit cards DOES help boost your score, it’s good comprehensive financial practice to make sure you don’t rack up useless debt.
If you end up using your credit cards and can’t pay the balance every month, MAKE SURE you don’t charge more than 30% of your limit (for example, on a credit card with a limit of $ 10,000, never charge more than $ 3,000 ). Keeping your balances low will go a long way toward improving your credit score.
4: Don’t close, lose, or ignore those old credit cards. The length of your credit history is 15% of your credit score. The optimal credit history is 30 years! Work hard to make sure those old credit cards are doing their job to improve your score.
Remember, credit cards must be used once every 6 months to be included in your credit score.
Hi-Tech Mode – Set one of your bills to automatically load from your oldest credit card. No matter how small the amount is. Any new balance will update that credit card at the credit bureaus so that all that long credit history shows up on your credit report.
Low Tech Mode – Carry your oldest credit card in your wallet and be sure to use it once a month to buy gas or groceries. This purchase will keep your card active and counting positively on your credit report. Lower it at the end of the month so you don’t have to pay any finance charges.
Putting some or all of these tips into practice can go a long way toward maximizing your credit score and ensuring the best rates on your home, auto, and credit card loans. And, whether we are high-tech or low-tech, this is an attractive goal for all of us.