Credit scores, also known as FICO scores, are grades given to you by credit reporting agencies. The agencies share your score with creditors and lenders who may want to extend a loan to you or approve you for good credit. Your credit score is determined by what’s in your credit report, which includes your past financial behavior. If you need to boost your credit rating, it won’t happen immediately. However, you can take some steps now to begin your journey to better credit.
Our goal at Quick Loans is to be a stair-step on your way to a bigger and better credit rating. Here are some ways to improve your credit score — Part 1 of 2.
Make Sure Your Credit Reports are Accurate
Everyone has a credit report from each of the 3 major credit bureaus, which are Experian, Equifax, and TransUnion. Did you know that one in five Americans find errors on their credit report? Incorrect information on your credit report could lower your scores.
Under the Fair Credit Reporting Act, you’re allowed a free copy, once a year, of all three of your credit reports. Most credit scores operate within the range of 300 to 850. The credit ranges typically look like this:
- Excellent Credit: 750+
- Good Credit: 700-749
- Fair Credit: 650-699
- Poor Credit: 600-649
- Bad Credit: below 600
Once you have your credit reports, ask yourself if all your personal information (social security number, birth date, full name, and address) is accurate to help identify potential errors. Also, ask yourself if there are any accounts or applications for credit that you don’t recognize. Then, dispute any errors with the credit bureaus and get them corrected right away.
Pay Your Bills on Time
If you have a history of late payments, it’s time to change that. Late payments can damage your credit and hurt your credit score. Once you make on-time payments for several months, you’ll begin to see your credit score improve. It’s important to pay all bills on time, including rent, utilities, the phone bill, etc. Use available tools and resources to help you each month. For example, you can make notes on your calendar, sign up for online payments and keep track of your bank account spending and savings.
Quick Loans quick tip: Overdue payments can remain on a credit report for up to seven years from the date of the missed or late payment. To get organized, consider setting up payment due date alerts with all your loans and credit cards.
Quick Loans Can Help
At Quick Loans, we get our customers where they need to be as quickly as possible. We make it easy and simple for you to apply for a loan. If you have any questions, contact our friendly team today. Finally, tune in next month for Part 2 of our blog about how to raise your credit score.