By George Reed on December 27th, 2016
Imagine that you have the best credit score in 2017! A couple of months and you can apply for any kind of the loan on the most affordable conditions.
That’s not a joke and not a fairytale. It might be your cherished dream that can become a reality. If you are intrigued, installment credit specialists are ready to share a few secrets.
Everyone would agree that a good credit score is possible unless the person is ready to follow the specific strategy. You are the one, who can reach the suitable three-digit number! Self-control, discipline, dedication, and this winning strategy will help you to achieve your goal!
1. Don’t Leave Your Payments Outstanding
Jessica Smith, who applied for a beneficial mortgage loan in 2015, has difficult times now. Her monthly income doesn’t reach $1500. She divorced a couple of months ago and has two children. Still, she claims that her credit score doesn’t suffer from her difficult financial situation. The best is to know how to cope with the mortgage in the first place.
A key for success lies in paying off a little bit more than a minimum payment. You mustn’t leave your monthly payments without attention. Lenders pay particular attention to the relation between a current debt and a possible balance. You have to show that you redeem at least minimum payment monthly.
2. Track Your Credit Report and Credit Score
One a year you have a free chance to apply to Equifax, Experian, and TransUnion for a credit report. In fact, you can ask to provide a credit report frequently. Still, in some cases, overuse of this information causes a decrease of the credit score up to 5 points.
Information about the credit score isn’t free. Nevertheless, some credit card companies release monthly statements, which contain a credit score.
If you want to improve your credit score, it’s important to know where to start. Furthermore, it’s crucial to keep an eye on this information to prevent frauds.
3. Don’t Close Zero Balance Accounts
Who had never felt a relief after paying off the balance? Only a person, who had never had a credit card, doesn’t know this feeling. What do we usually do then? Yes, we hurry to close the account. You might be surprised but leaving an account with zero balance open can increase your credit score.
Obviously, you need to control yourself not to come back to the old circle of monthly payments. Furthermore, if you can use your credit card wisely, control your expenses, and paying off the balance monthly, you will gain credit limit increases. It will improve your credit score and report.
4. Late Payments Mustn’t Exist
Usually, people know that late payments remain on the credit report for 7 years. During this time, they will hurt your credit score. Even one late payment can change the perfect picture of your credit history. Information isn’t exaggerated. You have to understand – there are no late payments in your life.
The payment becomes ‘late’ after 30 days of the negotiated date. That’s why if you experience difficult times, there is a sense to contact your lender and find a compromise together. All lenders appreciate the responsible approach. When you warn your lender that you will be late at paying off the debt, he will definitely try to find the beneficial solution.
5. Consider Debt Consolidation
Not every debt consolidation is beneficial. There are different circumstances, which can require or not require debt consolidation. In some cases, this operation helps to decrease the interest rate. Still, it’s important to contact your lender or any other expert to consider your specific situation.