A good credit score means that you manage your finances correctly. Having at least 700 is a goal that most people have, because this means a good standing, and creditors to give you loans. A low credit score can make your life miserable if you need extra financing. The creditors will not waste their time on you because you will probably have a hard time paying your dues. Here are some steps to make your low scores higher and to get that 700 score.
- Improve your FICO score by eliminating the negative aspects of the score. Read your FICO score to know which aspects has decreases so you can make a solution to that particular problem. If your FICO decreases because you don’t pay your creditors on time, then make sure next time you will pay in a timely manner.
- Go to the bank and apply for a secured loan. Having a loan can improve you credit score just be sure to pay it on time or you will decrease your score instead of increasing it. On your account, deposit some money–it can range from $500 to $600—and apply for a secured loan. The loan should be linked to your savings account. The bank can use the money deposited on your savings account as payment if you don’t pay your secured loan. Even you had a bad or good history on paying credits, the bank will accept your applied loan because they have a guarantee, the money on your savings account.
- Apply for another credit card only if you definitely need it or ask to be a supplemental cardholder. Having many credit cards can make your FICO score low. You can use the credit card of your relatives and friends to improve your FICO score, though. Ask them if you can be a joint or supplemental account holder to their credit cards. Your will credit score will get higher when your joint holder pays his credit account on time. If they don’t pay on time, though, it will also affect your score.
- A late payment of bills is a huge disadvantage for your FICO credit score. If you miss even a day on paying, it will reflect on your score. If you want to achieve a score of 700, try to pay your credit early to avoid any decrease on your rating. If you are experiencing problems on paying your bills (for instance, you forgot, or you are too busy), use the banks that have auto-debit arrangements paying. The bank will make bill payments for you on time, and automatically.
- Make up for the missed opportunity to pay. If you forgot to pay your loans, catch up by doubling your payment to change the negative effects on your credit score. Don’t make these mistakes again because your FICO score increases when you pay debts on time.
- If you can’t pay your debts, consult the creditors about it. If you don’t pay your dues without any valid reason, it’s a big setback on your credit score. Your creditors may come up with a solution for them to be paid. Make a payment plan because it may increase your FICO score credit. Consulting a credit counselor is not bad either because it will not decrease your score.
- Use your credit card correctly and balance it. If you have multiple credit cards, try to balance it by rotating usage, so you don’t incur too much interest with just one card. Try paying the entire amount, or at least more than the minimum. It will be a factor to get the 700 score that you wanted. Exceeding on your card limit also decreases your FICO score so always be sure to check your balance before making purchases.