Your credit health is a lot like your physical health–there’s no fast lane to a perfect credit rating or perfect health; it is really a long term trip. But just like you can make healthy exercise and workout decisions, you can make the same choices for your credit.
Listed below are some methods that you should try right now to enhance your credit health.
Job: Request a credit limit increase.
Advantage: Reduces your credit-card utilization.
Time: 10 minutes
Approach: Calling up your credit card company to ask for a limit increase may appear as an intimidating job, but it’s something you should consider if you want to increase your credit score and health? Credit limits are reviewed by most companies approximately every six months on average. If you haven’t had a limit increase recently, it’s worth requesting one. The worst they can do is say no. However if your credit is still in good standing, you will most likely receive an increase of some amount.
Find your lender’s phone on your latest statement or by doing a search online. Call them up and speak to a representative, preferably a manager if possible. Once you are speaking with someone, inform them how you have constantly made your payments punctually, and just how you have loved having their credit card. Following this initial discussion, tell them that you would like to see about obtaining a credit limit increase
Look out for: Occasionally, credit limit increase requests may require a new inquiry on your credit report. Make sure you find this out ahead of time and ask if they can issue the increase without a new credit check.
Job: Create a “Goodwill adjustment letter” for a previous late payment.
Advantage: Removes a late payment from an otherwise excellent credit report.
Time : 15 minutes
Approach: If you’ve normally made your payments on time, but only missed this one payment, requesting to have this mark on your credit removed will probably work. In your letter, you’ll state your case for why the delinquency ought to be taken off. Demonstrate what a faithful client you have been and how much you have improved your fiscal standing since this one error. Compose your request following this example and wait about 1 month before following up, if you have not received a reply.
Be cautious about: Keep in mind that the credit card company is under no obligation to remove the credit blemish, so be ready for that outcome.
Job: Devise a plan to pay off your credit-card debt more quickly.
Advantage: Reduces the amount of interest paid.
Time: 30 min to one hr
Approach: If you are inclined to hold balances on your own credit cards every month, it would benefit you to figure out a way to pay an additional amount toward the balance each month. Experts recommend having your credit card utilization below 30%. This means having a balance no higher than 30% of your credit card limit.
First, determine which cards have the highest interest rate and is your balance higher than 30% of your limit. These are the cards you should work on first. Raise that repayment rate in order to gradually lower your total balance. Even if you can increase your monthly payment by $25, this will significantly lower the interest you pay and the time it will take to pay off the entire balance.
Look out for: Avoid utilizing your credit cards with high interest rates and balances. Leave these at home. If you don’t, you’ll charge back all of your hard work and be back where you were at the beginning.
Job: Apply for a balance transfer credit card & move your debt to that card
Advantage: Reduces your credit-card usage and raises your total amount of balances.
Time: 15 moments (then 7-10 days, commonly)
Approach: When you’ve got tons of various credit cards with different amounts to pay, making several payments monthly may appear difficult. There are many cards offering opening balance exchange rates, meaning in case you transfer all or a number of the additional cards’ balances, you will not spend any interest on these balances for 12-18 months (depending on the card). For example, with the Discover It, you’ll have 18 months to pay off your transferred balances interest free. You’ll also reduce your own credit card usage in the procedure. Click Here for additional Balance Transfer Credit Card Offers.
Be careful for: In many instances, should you not pay off your balance transfer entirely before the trial period ends, you’ll be required to pay interest on the entire amount transferred. This is an excellent way to pay off your credit card debt if you’re serious about making the commitment.
Job: Clean up mistakes on your credit reports.
Advantage: Provides a far more accurate credit rating and should increase your credit score.
Time: 1-hour (then around 30 days)
Approach: While some credit record mistakes do not change your credit rating at all (like errors in your own personal info), others can seriously affect your capability to get qualified for credit (like erroneous derogatory marks). Bottom line: Cleaning up your credit history should become a high priority. Utilize the step-by-step information in Disputing Credit Report Errors, to assist you in cleaning up your credit reports.
Be careful for: Some credit repair services may say that they can remove every negative element showing on your credit reports and, that is just not accurate. Negative blemishes on your report which are 100% accurate cannot be removed. While they may come off your report with time, they cannot be taken off simply by writing a letter requesting they be removed. Read our article on Credit Repair Companies before you make a decision.