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November 13, 2017

3 Great Hacks to Make A Good Credit Score Better

There are many reasons consumers will want to increase their credit score from good to great, and at the top of the list is securing a great finance deal. According to the Consumer Protection Financial Bureau, those who have better credit scores are in a better position to negotiate rates and terms. This could mean substantial savings, which makes the extra effort into a great credit score worthwhile. These are three fast ways to improve a good credit score.

Scrutinize the Credit Bureau Report

Although frequent credit checks can be detrimental, some bureaus offer consumers access to a free credit report per specified cycle. With this credit report, consumers are encouraged to check each item to ensure the information is up to date. Some of the hidden items on credit reports include:
  • Old debts that have been paid off but still reflect open 
  • Incorrect reporting from financial institutions on certain debts 
  • Lowered credit limits that appear incorrect on the bureau

Use a Credit Repair Company to Up the Score

Credit repair companies are not just for those who have bad or low credit scores, as these companies play an invaluable role in determining exactly what is reducing the credit score. They make use of a team of credit specialists to take the credit report and work through every item to ensure that the customer is getting the maximum score out of every product. They may even reduce terms and remove items entirely if these are not within the ambit of the legal framework. Consumers can learn more about the company and what they do to secure better ratings.

Take A Look At Utilization

Consumers who wish to close down accounts should take their utilization into consideration. If they had a combined limit of a certain amount and this limit is suddenly reduced or taken away, it could cause the utilization to increase which has a negative effect on the credit rating. The safest way to close accounts is to ensure that the utilization of other accounts drops accordingly to remain within the same category. Some form of credit is still needed in order for the algorithm to determine the various factors that go into the score.

It’s important to try and access credit as little as possible in order to ensure that the score remains unaffected. Those who wish to improve their scores to reach a certain financial goal should start sooner rather than later, as the process can take some time.

The views and opinions expressed herein are the author's own, and do not necessarily reflect those of EconMatters.

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Item Reviewed: 3 Great Hacks to Make A Good Credit Score Better Rating: 5 Reviewed By: EconMatters