Do you want to repair your credit score? Like most people, maintaining and improving your credit score is essential. A high credit score means you can qualify for a loan at a low-interest rate, while a low credit score can mean paying sky-high interest rates and being denied for loans altogether. 7 Figures Funding has your back with these tips to boost your credit score and get it back on track.
Pay Your Bills on Time
It is obvious but merits constant reminders; paying your bills on time is the best way to help your credit score. This means ALL your bills, from your mortgage payment to your cell phone bill and even your library fines. Late payments have an immense impact on your credit score, so make sure you always pay on time.
Keep Your Credit Limit Utilization Low
Your credit utilization – or the amount of credit you’re using in relation to your credit limit – is another major factor in your credit score. So if you’re maxing out your credit card or regularly carrying a balance close to your limit, it will drag down your score.
You can ask for higher credit limits for your credit cards but avoid hard inquiries that may impact your credit score. It is better to accept any pre-approved credit limit increases offered to you.
Pay Your Credit Card Bills Strategically
One of our favorite tips to improve your credit score is to pay all or some amount on your credit card before the end of the billing cycle. It might also be helpful to pay some amount a few times during the billing cycle. This helps keep your credit utilization rate down and boost your credit score.
Be Cautious with New Credit
Whenever you open a new line of credit, it has the potential to lower your credit score. Therefore, open it when necessary and time it, so the hit on your score is the lowest. And when you do, make sure you shop around for the best rates so you don’t end up with an unnecessarily high-interest rate.
Ask to Correct Errors on Your Credit Report
This is perhaps, the simplest way to boost your credit score. Dispute any errors on your report immediately. These errors could be anything from wrong late payment information to a mix-up of your personal information.
PRO TIP: Become an authorized user on the credit card account of a family or friend with good credit history! You can repair your credit score by benefiting from their excellent credit history and credit limit. The account holder doesn’t even have to give you their card or card number for your credit to improve.
If you’re looking for ways to repair your credit further or are a startup or an entrepreneur looking for funding in the Los Angeles, CA area, 7 Figures Funding has various resources and options to meet your funding needs.