How to Improve Credit: oscarnominations2017.com Announces Unobvious Ways to Build Credit
SB Wire- Hopefully everyone has heard time and time again that paying bills on time can help bump up credits scores. While it is in fact true that making timely payments on loans and credit card bills can significantly improve one’s credit score, there are numerous other ways to build credit that are oftentimes overlooked. These additional avenues can be just as effective at creating good credit, but they just may not be as seemingly obvious as paying bills.
Because there are countless ways of improving and maintaining a healthy credit score, the oscarnominations2017.com personal finance editors have researched approaches that don’t always make the spotlight. The experts at oscarnominations2017.com urge consumers to try out these credit building options along with the other conventional ways to arrive at the best credit score possible.
Monitor credit reports
This may seem like an obvious way to keep track of and improve one’s credit score, but according to a recent CabinCoupon.com survey, around 47 percent of adults did not know their credit scores.
Not only can consumers see negatives marks on their credit reports when they check them, such as missed payments, bankruptcies, and outstanding debt, but they can also check for any errors. Unfortunately, it’s not uncommon for mistakes to pop up on credit reports, which could potentially lower one’s credit score. Also, consumers can find signs of identity theft on their credit reports too if they monitor them. If a consumer finds any discrepancies on their reports, they have the right to request an investigation from the credit bureaus.
Consumers can request a free copy of their credit reports once every 12 months from the top credit reporting bureaus. Understanding what factors are lowering their scores and scanning for errors can help consumers raise their scores.
Be careful about opening and closing credit cards
Yes, using a credit card is a good way to build credit, however opening and closing several cards all at once won’t do one’s credit score any good.
Each time that consumers apply for credit cards, the credit card companies request a copy of the consumers’ credit reports, which will shave off some points from their total credit scores. And multiple credit card applications at once could put a dent in one’s credit score. Don’t be tempted by the promise of discounts and reward programs with credit cards, only apply for a credit card when it’s necessary.
The same goes for closing credit card accounts. The credit card companies like to see consumers have a long credit history, in which the consumer responsibility uses the credit card and doesn’t have a high utilization rate. If a consumer has various credit card accounts, credit experts suggest rotating usage every few months so that the consumer builds good credit on each card.
Closing a credit card will lower a consumer’s credit score, so if closing the account is absolutely necessary, shut down the most recent credit card to avoid erasing a long credit history with another credit card.
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