Credit history represented by credit score rating is very important for anyone who wants to take any more credit and loans. A minimum credit score is required to meet the demands of certain lenders while seeking financial assistance. Thus, we know the importance of credit scores and we want to raise credit score to a better number for the present and for future needs that must be catered to. And to raise credit score, we have to know about the most effective methods.
It is not hard to come across tricky advertisements that promise increased credit scorings immediately, but since all good things take time, there is no way to raise credit score quickly and legitimately. Legitimacy is must as all loans depend on this.
One quick and legitimate way to raise credit score is to request credit line increase which would in return improve the credit utilization ratio. What happens, in this case, is that it affects the credit score by affecting the total percentage of the usage of the credit card limit. This makes it difficult to raise credit score. Though many credit card issuers allow increased credit line without asking too many questions, it is necessary to be alert and ready to withdraw the request if there is a demand for additional information. Additional information may mean that the issuers might be planning to pull the credit and cancel the application. This is going to have a very negative effect on the credit score. It is necessary to avoid this as quickly as possible. This option is like walking a tightrope, but one has to find ways to consider different options because that is the only option that is viable.
The second and the simplest way is to pay off the debt after working on the first option. Repaying debt would decrease the total amount of interest that is needed to be paid and would automatically raise credit score. It will be useful to repay the smaller debts while preparing funds for larger debts. This will make the task of repayment easier.
It is necessary to know the way credit offices work. They are least concerned about the balance you carry when they calculate your credit utilization ratio. Instead, they are concerned about your statement closing balance. They do not want to know whether you pay the whole of it in the same period. The only way to help yourself, in this case, is to limit the usage of the credit card usage to the minimum and in return lower your statement balances. This is a smart way, and this careful move will be useful for the future.
Another way is to do consolidation. Having two or more credit cards is not an unusual phenomenon and consolidating them if possible into one could be a great advantage to raise credit score. For this, you need to figure out the possibility of consolidating multiple, older and newer, cards by the same issuer into one by keeping the total credit limit the same. If the customer representative gives a green signal about this, then you must go ahead with this option. With this, you increase the average age of your circling lines of credit. This affects your credit utilization ratio positively as it does not reduce the total credit limit; this is the key to balance and improvement.
After all these checks, it is also advisable to go through your credit report enough number of times and carefully. A series review would help to identify any mistakes, false marks, omissions, etc. Do not rule out the possibility of an unintended or intended careless negative mark that isn’t fairly yours. By identifying this, you can challenge it and get it removed. Why pay for someone else’s mistakes? Also, it could be possible that the report maker has missed out information about you such as an account which legitimately needs to be represented on the paper. Cautious addition of such information on your papers saves future trouble when you try to raise credit score.
People adopt various ways to do what they want to and achieve the desired result, and this is why there is no single way to do one particular task. But in a world bound by certain rules and regulations, one has to play by the game in a limited way. Raising credit score is vital to the current monetary system and to attain benefit from this system. One needs to be empowered and feel free, but once again one should be cautious about how the credit score is raised. It is necessary to keep all pros and cons in mind while opting for any method to raise credit scores. Once this is done, take a firm decision to raise credit score with the selected method.
