Steps on How to Improve Your Credit

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Learn how you can give your credit score a boost.

Having a good credit score is vital for getting approved for credit cards, loans, and for getting good financing rates.  However, you can’t simply improve your credit overnight.  Improving your credit score requires patience and attention, but remember that your efforts will be worthwhile in the long run.  If you would like to improve your credit score, here are some steps that you should take.

1) Understand your credit score.

Before you can improve your credit score, you should know what it is by checking your credit report. Your credit score is derived from the information on your credit reports, so make sure your reports are accurate.  Most credit scores range from 300-850.  A bad credit score is below 600, poor is 600-649, average is 650-699, good is 700-749, and excellent is above 750.

2) Address late payments.

First, make sure that you don’t miss any more payments.  Set up payment alerts for your credit cards and loans.  Try to schedule payment dates in relation to when you are paid.  In regards to past payments, ask your credit card company or lender if they will excuse the last payment.  Occasionally, they will agree if you were out of town, or your bill or payment was lost in the mail.  If you have a history of making payments on time, companies are more likely to forgive.

3) Build a strong credit age.

If you have a short credit history, then there isn’t much you can do to raise your credit score quickly.  You can either wait it out and make sure you don’t close any accounts, or try to piggyback on a family member or friend’s credit card.  To do this, choose someone with a long history of making payments on time and have them add you to their card as an authorized user.  Be aware that finding someone willing to do this might be difficult, because they would be on the hook for any charges you make.

4) Stop applying.

Every time you apply for a new card, your credit score takes a hit regardless of if you’re approved or not.  While the effect on your credit score may seem minor, if you are between credit score levels or if you apply for a lot of cards in a short period of time, the damage could really harm you.

These are just a few of the ways that you can improve your credit, so make sure you understand all the avenues available to you.  Improving your credit is a smart financial decision, but another good decision?  Making sure you have the right escrow professionals on your side if you are in the process of buying or selling your home.  To find the best escrow services in Hermosa Beach, California, contact Brighton Escrow.  Our dedicated team is ready to assist you will all your escrow needs.