If you’re working on rebuilding your personal credit score, many advisors and articles online will suggest taking on new debt to demonstrate your financial responsibility. While having more available credit can boost your score, many people don’t want to take on any additional debt. Fortunately, credit ratings are complex calculations, giving you the opportunity to increase your score without opening new accounts.
Increase Your Credit Score Without New Credit Cards
Make Payments on Time
Payment history is the single most important factor in your credit score, determining approximately 35% of your final rating. It might take some time, but making regular on-time payments can have a much more dramatic rating on your personal credit rating than getting a new credit card or opening another account.
Pay Down Debt
Getting another credit card or store account isn’t the only way to increase your amount of available credit. Instead, you may want to concentrate on paying down the debts you already have, which will boost your personal credit score and provide peace of mind.
Check Your Credit Report
By some estimates, an astonishing 20% of credit reports contain serious errors that can affect your interest rates and even your ability to get a loan. Each year, get a copy of your credit report and check it carefully for paid-off debts marked as delinquent, accounts that aren’t yours, and other mistakes, and report erroneous information as soon as possible.
See a Credit Counselor
While there are a few general principles everyone can follow, only a skilled professional can offer solutions tailored to your specific situation. A credit counselor can review your debts, your income, and your monthly budget and develop a customized plan for rebuilding your score and achieving your financial goals.
Whether you’re working on rebuilding your rating or looking to increase your credit limits, the counselors at You're Approved in Melville, NY, have the expertise and proven methods to help you succeed. Their experienced counselors will take a look at your financial situation and recommend steps to optimize your credit score, decrease your debts, and create the financial stability you need. Visit their website, get more personal credit tips on Facebook, or just call (631) 683-3303 to make your first appointment.