How to Get a High Credit Score Fast
The dream of having a high credit score is likely an aspiration of every consumer in the world. A high credit score can ensure consumers that they receive the best deals that lenders have to offer. On the contrary, a low credit score will almost guarantee lenders will not offer credit, and if they do, they will receive higher interest rates than those with a good credit score receive.
Achieving a High Credit Score
A high credit score takes a little bit of work to achieve. Consumers must make certain decisions that help them achieve good credit. The following are the factors that consumers need to get a high credit score:
- Limit debt – consumers should make sure that they limit the amount of debt that they accumulate. A good credit score and too much debt can cause lenders to deny credit or offer high interest rates on loans to consumers. Do not carry more than 30% debt on credit cards and pay off debts as aggressively as possible.
- Manage credit effectively – The worst thing that consumers can do is mismanage their available credit. Lenders offer credit to consumers because they think that they are a low risk for default on loans. If consumers do not manage their credit effectively, they may not have any credit options when they really need credit.
- Limit credit card debt – Credit card debt can really lower a credit score. Consumers who spend their available credit on their credit cards frivolously may pay the price when they see their low credit score. High credit card debt can raise the debt to income ratio higher than it should be to receive credit when the time comes to purchase a home in the future.
- Pay all bills on time – Paying bills on time is a must for consumers. Lenders view late payments as negative factor for consumers who wish to receive credit. Consumers should know that late payments remain on credit reports for 7 years—even on closed accounts. A few late payments may cost consumers a much needed loan.
- Have a good credit mix – Lenders are not satisfied with consumers who only have one type of credit. For example, lenders who only have credit card debt may have a lower credit score than those with a variety of credit types. Consumers must show lenders that they are capable of using revolving and installment debt.
- Use credit regularly – Having credit and not using it is almost the same as having bad credit. When consumers do not use their available credit on credit cards on a regular basis, their credit score will suffer. If consumers do not apply for credit regularly, their credit score cannot increase.
A high credit score begins with making responsible decisions regarding credit. It is not a good idea to apply for an excessive amount of credit, nor is it a good idea to use credit when unnecessary. Responsible consumers have the best credit score. It is never too late for consumers to become responsible with their credit.