There are many large purchases made in life that often require some type of financing. Whether it be buying a house or a car, it is imperative that you have a good to excellent credit score to secure the best loan rates possible. When you are able to obtain loans with extremely low interest rates, it allows you to improve your cash flow without being charged an unreasonable amount of interest. Financing allows you to make large purchases as needed, without having to sacrifice your preferred type of lifestyle. With this in mind, make sure to follow these top 6 tips for raising your credit score:
1) First of all, you’ll need to make sure that the credit score you have is correct. You can easily obtain a free copy of your credit report online. If you notice any errors, you’ll need to contact the appropriate agency to have it corrected. Fixing errors on your credit report can easily raise your credit score by 50 to 100+ points.
2) Negotiate any debts that have gone into collection to help raise your score. A simple phone call to the collection agency can save you thousands of dollars and have the debt reported as “paid as agreed,” which will boost your score.
3) Increase the limits on your credit cards to improve your credit score. Just make sure you don’t increase the amounts charged. You want your debt-to-credit limit to be as low as possible — preferably around 35%.
4) Keep a balance on only one credit. Although you will want one to three additional credit cards, making charges only to the one with the lowest interest rate will help you keep better track of how much you’re charging, and it can also reflect nicely on your credit score.
5) When you have accounts that are in good standing but you want to close them, you should reconsider this move. Any old debts that are in good standing will significantly help your credit score because they show you have maintained positive, long-term financial choices.
6) Lastly, and most importantly, the number one tip to remember is always make your payments on time. Lenders are leery of borrowers who miss multiple payments. Often times, lenders turn down applications until all prior loans and credit cards have been brought into good standing.
With so many benefits available, it’s time to become a Mercer Savings Bank customer today. Call 877.672.4543, or contact Mercer Savings Bank today.