According to a recent survey by Forbes magazine, 30% of people are willing to confess their weight while only 12% would be willing to reveal their credit score.
Changing your credit score in a short time is difficult, but not impossible. As with any diet, some willpower and discipline are the key ingredients in achieving the desired results. The following seven recommendations will allow you to improve that score that has so much impact on your daily life.
- Negotiate your debts
Sudden changes in your job or business can lead to you being delinquent on your debts. In the event that you are delinquent on any of your debts, contact your debtor and seek to negotiate the outstanding payments. If you have been served with that same entity in the past, use this information to your advantage to reach an agreement that benefits you and improves your rating.
- Have a credit card
Having one, or better yet, two credit cards can do wonders for your credit score — as long as you don’t exceed your quota and pay on time. In other words, use your cards to appear as a responsible debtor to third parties.
- Be clear about your quotas
Always make sure to take into account the quotas of your credit cards and always try to be below your maximum allowed quota. You don’t want it to feel like you have to overdraw each month on your cards to keep up with your spending level. If you are not sure about your limits, contact your bank and request that information.
- Increase your debt quota
Ask your bank (or banks) to increase your line of credit. But be careful, don’t let an increase in your quota mean an equal increase in your expenses.
- Don’t cancel your credit cards
Canceling your cards means lowering your credit limit, which will not look good on your credit score. Before canceling a card, keep it and use it to pay your cell phone bill or some other service.
- Combine your sources of credit
Using different types of credit can help you improve your credit score. Use, for example, a consumer loan to purchase your living room or pay for a new appliance using the credit lines that large supermarkets or others lend to their customers. Be careful, in any case, not to incur debts that constitute a future headache.
- Pay your credits on time
We are serious: your credit history, including late payments are part of your credit score. If your family life, work, traffic jams and, in general, lack of time affect your commitments, make use of automated payment methods, as well as the internet and ATMs; Dedicate a day, or better two, in your agenda in which you must make your payments.