Recently I took the time to sign up for Credit Sesame to check out my credit score which is always the first step into raising my FICO score higher. I chose Credit Sesame because it’s free to use and doesn’t require a credit card. Since I’m always posting free stuff for my fellow Bargainators, I wanted to show you guys how you can save money by knowing your credit score and raising it.
Here are my top tips to raising your credit score.
First tip is to sign up to Credit Sesame (It’s completely free and doesn’t require a credit card unlike others).
Take a look at your current score and if it’s low keep reading my tips to gain a better understanding on how you can raise it.
Look at all of your accounts and make sure everything being reported is accurate. Sometimes closed accounts might still show as unpaid or late, sometimes you might have accounts that don’t even belong to you. Credit Sesame makes it very easy to dispute these accounts to help raise your score.
Always pay your bills on time because they will report you are late which dramatically drops your credit score.
If you can’t pay your bill on time, call the company and tell them you are going to be late and they appreciate the courtesy and try to help you by giving you a grace period to pay your bill.
Don’t close accounts that are aged in history, if you have a credit card that’s been open for the past 10 years and have a good standing with them, there is no reason to close that account. Credit history is an important factor that plays a major role in your credit score.
If you have a high balance on a high interest credit card, try to do a balance transfer to a 0 APR credit card. Sometimes credit cards have promotions such as 15 months 0 APR on balance transfers. This way you can pay your debt faster without having to pay interest and this can have a positive impact on your credit score.
Try not to use more then 40% of your credit card balance. If you have a limit of $1,000, don’t go over $400 in charges. This shows companies that you aren’t relying on your credit cards to pay bills or make purchases.
If you have poor credit, try calling the companies you owe money to and talk to them to figure out a way you can pay the debt back in payment plans.
Don’t open too many accounts right away because it can ding your credit score.
Why does a credit score matter?
Your credit score helps with opening credit cards, getting a car loan, getting a house loan, and having bad or good interest charges.
Having a higher credit score such as 720, you can get better interest rates then having a credit score of 600.
Thinking about leasing or purchasing a brand new car? Make sure your credit score is high so you can get the best possible financing for your new purchase. A high score means lower interest rates and banks would love for you to take a loan. Your acceptance will be at a higher rate then having a lower credit score.
Your credit score is basically your grade on how well you manage your debt and helps in obtaining not only loans but loans with lower interest rates.