When it comes to buying power, your credit score is one of the most important things to consider. Building credit and maintaining a good credit score is crucial for success whether you want to buy a home, finance a vehicle, and even get better rates on auto insurance.
If you are not sure of your credit score or what is on your credit report, now is the perfect time to learn more. If you know that your credit rating could use a bit of improvement, the 12 tips in our “How Can I Raise My Credit Score in 30 Days?” guide may help you do just that.
Pay Attention to Credit Inquiries – Credit inquiries stay on your credit report for two years and can negatively affect your credit score. Disputing these inquires can lead to removal. Simply use the credit bureaus’ dispute system, which requires the creditor to verify that you gave them permission to view your credit file. It’s likely they can’t. Your credit score will improve quickly if removed.
Pay Off Credit Card Debt - Your credit score takes into consideration the ratio of your credit card debt to the credit limit of each card. Owing to high debts on credit cards makes your credit score suffer. [Not sure what this is trying to say? Is it this: If your total credit limit on multiple cards and/or your combined credit card debt is too high, your credit score can suffer.]
Negotiate with Collection Agencies - If there are collection accounts on your report, contact the collection agency. Request a “pay-for-delete” so that when the negative account is deleted from your credit report for good when you pay the amount due.
Earning and maintaining a good credit score is crucial for your financial success. Raising your credit bureau score can offer substantial rewards and shows you have valuable skills for money management. Contact your local community bank today to learn about how we can help you raise your credit score for a bright financial future.
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This content is provided for general informational purposes only and does not constitute financial, investment, tax, legal, or accounting advice. Individual circumstances and current events are critical to sound investment planning; anyone wishing to act on this information should consult with a financial professional. The information contained in these articles was obtained from sources believed to be reliable and accurate at the time of publishing. We do not represent that it is accurate or complete, and it should not be relied upon as such. All opinions and estimates expressed in this article are as of publication date unless otherwise indicated, and are subject to change.