There are many things to remember about having better credit. It is very important for you to keep in mind that good credit score is considered essential for the purpose of keeping your financial details in correct order. However, in this article, we will be sharing the details about different steps that must be taken for maintaining your credit successfully. Moreover, there are also claims that, you can increase your credit score by around 100 points if you take the right steps for it. Also, it will help to increase your credit score by a great extent which is considered hugely beneficial in the long run. Ways to Maintain Better Credit.
Should pay for credit card Strategically
The first pointer to talk about in this very article about having better credit is that you should be paying for your credit card in a very strategic manner. You should always be aware of the fact that the part of your credit limits that is being used at any time is said to be your credit utilization. Moreover, remember to use less than thirty percentage of your credit limit as it is considered to be better if it is lower. In addition to that, the main factor is to always pay on time while credit utilizations is also one of the factors for your credit score. Also, make calendar reminders for the purpose of logging in and making payments.
Go for higher credit Limits
Primarily, you need to get in touch with your credit card issuer for increasing your credit card limits. Also, at the time when your credit limit increases but the balance stays same, it is known to lower the overall credit utilization that further helps to improve your credit. Moreover, do keep in mind that for being eligible for higher credit limit, you need to have some years of positive credit and also your income increases to some extent. However, when the higher credit limit is reported to the credit bureaus, this will further lower your overall credit utilization. Though, you should not use the extra room on the credit card.
Be an authorized User
The third thing to consider about having better credit is to become an authorized user. One of the definitely good option for the purpose of bettering your credit score is when any of your relative or friend is having any credit card account with better score along with a history of on-time payments, then you can add the person as an authorized user. By following this step, it adds to the credit reports and so the credit limit ca also help in your credit utilization. Moreover, for particular purpose, the account holder does not need to share the account number with you. In addition to that, you need not even have to use the credit card of the person.
Clear bills on time
The fourth pointer to talk about maintenance of better credit is to always pay the bills on time. However, do also keep in mind that no strategy will be effective for the purpose of bettering your credit score if you do not make the needed payments on time. Along with that, late payments that you make on your credit cards are said to stay in your credit reports for seven and half years. Also, you need to take into account that when you miss making any form of payment by thirty days or more, you are subjected to call the creditor on an immediate basis. The record of paying your bills on time is one of the main factors of better credit score.
Correct any credit report Errors
The fifth thing to discuss about improving your credit score is to always correct any type of credit report errors that may have occurred. Moreover, if you are able to successfully dispute credit report errors, your credit score is known to increase in rapid manner. In addition to that, you can also have free reports from each of three main credit bureaus which are out there. The mistakes that can have occurred include marking payments late even if you had paid on time, mixing credit activity of two users and also any form of negative information that no longer needs to be highlighted.
— CREDIT IDEAS & FINANCE TIPS (@Credithealth24) September 9, 2022