Whenever you apply for an apartment or credit at a department store or take out a loan, your credit score pops up again and again. Just like your social security number, your credit score is something that tracks you for the rest of your life. In fact, in the eyes of lending companies and banks, your credit score is part of your identity.
If you haven’t been exactly religious in paying your credit cards, or you racked up some bad debts in the past, you don’t have to worry that these will continue to depress your credit score. There are simple things you can do to help boost your credit score.
The good news about all this is that there are few simple things you can do to boost your credit score. These don’t involve pulling teeth or anything uncomfortable. You just have to wrap your mind tightly around the idea that you can do something about your credit score. You have to realize that your credit score doesn’t define you and that your score is not set in stone.
Take charge of your financial destiny by keeping the following tips in mind.
1. Borrow but pay off consistently
One of the biggest myths regarding boosting credit scores is the persistent thinking that you have to totally knock out your debt in order for your score to increase. This is flat-out wrong. If you nuke your debt the next month, your rating still remains the same.
Credit scores mention your ability to handle debt over the long haul. In other words, credit bureaus want to gauge your ability to pay off debt consistently over the long haul. Stability and consistency are the main drivers of your credit card score.
2. Ramp up your borrowing
In line with the first point above, you should look into increasing the amount of cash you borrow. Why? Lending institutions want to figure out how responsible you are with increasing debt. Again, the focus is on your stability and consistency. If you are able to handle increased debt but can pay it off over the long haul, you are an attractive prospect for a credit or financing company.
If you only take small loans, then that’s the amount of risk you are tied to. However, if you show a pattern where you can take bigger and bigger obligations and pay them off, you look good to your local financiers.
3. Call your credit bureau to clear up derogatory remarks
This is one tip that many credit card holders fail to take advantage of. The truth is credit bureaus have open ears regarding customer feedback. Let your voice be heard. Help them tighten up your credit score by calling directly to knock out derogatory remarks on your credit history that were made several years ago.
Don’t let these past mistakes screw up your credit score now. Get on the phone and explain your situation. Chances are they will increase your score provided that the derogatory statement was made several years ago.