As a consumer, you’ve learned the importance of establishing a good credit rating with your lenders. These 14 Ways To Get Superstar Credit And Protect Your Credit Score will help you establish credit.
This can be used whether you are shopping for a new home or auto, or searching for the best deals on insurance.
Your creditworthiness will be judged by your credit rating or credit score.
Your credit score accounts for the amount of interest you have to pay for a loan or a credit card. Increasing your score just a few points will make a big difference in the interest rate you will pay.
If your credit score is high enough, you’ll have no problem qualifying for a lender’s best rates and terms on auto financing, home loans, and small business loans.
The following are a few tips about how you can protect and improve your credit rating.
1 – Order Your Credit Report
Your credit score is based on your credit report, so you should begin by ordering your reports and reviewing each one for accuracy.
You can get your reports from many online services that provide credit reports to consumers, or order from Equifax, Experian, and Trans Union separately online or by phone.
2 – Check Your Credit Report Information for Inaccuracies
Check the identifying information for name, social security number, birth date, and incorrect address. Make certain that old negatives and paid-off debts are deleted.
Check for accounts and delinquencies that are not yours, late payments, charge-offs, lawsuits, judgments, or paid tax liens older than seven years old.
Also, paid liens or judgments that are listed as unpaid, duplicate collections, bankruptcies that are older than ten years, and any negative information that is not yours.
3 – Always Pay Your Bills on Time
Payment history makes up more than a third of the typical credit score. If you paid bills late in the past, you can improve your credit score by starting to pay your bills on time. Lenders are looking for any sign that you might default, and a late payment is a good indicator that you are in financial difficulty.
4 – Keep Credit Cards Balances Low
Carrying smaller balances is one of the 14 ways to get superstar credit. The score measures how much of your limit you use on each credit card or other line of credit, and how much of your combined credit limits you are using on all your cards.
Within 60 days, paying down credit card balances can increase your credit score by as much as 20 points.
5 – Try Not to Open In-Store Credit Cards
Although your first credit accounts can serve to build and improve your credit history, there comes a point when each subsequent credit application can reduce your score.
New credit cards reduce the age of your credit history, and a department store credit card isn’t good evidence of creditworthiness. Every time you apply for a retailer’s credit card your credit score gets dinged.
6 – Be Conservative When Applying For Credit
Having at least one credit card that’s more than 2 years old can help your score by 15 percent. Make sure that your credit report is checked only when necessary.
Or, if you are shopping for a home, try to apply for loans within a two-week period. By keeping the loan process within a two-week period, all of the credit report lookups are seen as one single request.
7 – Don’t Close Credit Cards or Other Revolving Accounts
Shutting down unused accounts that have outstanding balances without paying off the debt changes your “utilization ratio,” which is the amount of your total debt divided by your total available credit.
It will reduce the gap between the credit you are using and the total credit available to you, and that can hurt your credit score.
Many credit card holders aspire for a higher credit card limit. The obvious reason for this is that a higher credit card limit enables the purchase of otherwise unaffordable merchandise.
First and foremost, credit cardholders need to remember that to get a higher credit card limit, they must abide by the terms and conditions of the credit card company or bank.
Below are ways to get a higher credit card limit.
8 – Prove Creditworthiness
The most important thing to do for getting a higher credit card limit is to prove your creditworthiness. This is the first thing that banks and companies look for when giving a higher credit limit.
9 – Pay-Off Finance Charges
Attract positive attention from the credit card company or bank by paying finance charges once in a while. Obviously, this is not advisable on a repeating basis and should only be used as a last resort to increase your chances of getting a higher credit limit.
Proving to credit companies that you are a good “borrower” can be a convincing way to get higher credit.
Be careful because this strategy also means that you will be paying finance charges which can accumulate in a hurry.
And always remember, a higher credit card limit means greater purchasing power. But, it also increases the risk of your having to pay greater interest charges and other processing and late fees.
10 – Do Not Overcharge
Always spend within your credit card limit because doing so means that you are capable of controlling your expenses.
11 – Use Your Credit Cards Regularly
Don’t keep your cards for emergency use only. If you use your credit cards sparingly, banks and credit card companies will be unable to understand your spending and pay-back behavior. Under these circumstances, most banks and credit card companies will be reluctant to give you a higher credit card limit.
12 – Never Make Minimum Payments
Instead, try to pay for the entire outstanding amount. This will usually give you a better chance of getting a higher credit card limit.
13 – Avoid Late Payments
As much as possible try to avoid making late payments. Not only will your increase payment increase; but you may also have to pay an additional fine for not clearing bills on time. This will also dim your chances of getting a higher credit card limit.
14 – Use Your Credit Wisely
The best and simplest strategy for getting a higher credit card limit is to use your credit card wisely. Always keep in mind that credit card companies keep a record of your transactions and payment patterns. So always pay on-time.
Establishing good credit habits and therefore a good credit rating will improve your creditworthiness. This will be reflected in potential lenders offering you substantially lower interest rates and better deals on credit offers.
Your payment habits will determine whether you’ll get a higher credit card limit or not. So you can use these 14 ways to get superstar credit and protect your credit score to help you establish credit. That’s the bottom line!
Are you ready to improve your credit score for a higher credit limit? If so, check out the resources recommended to you by Inker Street Consumer Credit Advice.
- Household Budgeting: This guide will show you how to stick to your budget. So, soon you will have a monthly surplus, and you will see your savings start to grow.
- Debt Consolidation Strategies: When it comes to debt consolidation, you need to practice techniques that are a little unique and very much focused on getting you out of debt within a stipulated period of time.
- Debt Destroyer: Finally you can fully equip yourself with these “must-have” tools for busting debt and live a life without having to worry about debt collectors!
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