Easy Steps To Increasing Your Credit Score

The first thing a borrower needs to do when trying to improve their credit is to evaluate their current situation. We have to narrow down what is making the score drop or stay at a lower number. Once we can figure out what is making the credit low then we can strategically get that number to rise with just a few simple tactics. The easiest way to help your credit score is to talk to a professional. Direct Lenders, LLC is filled with the best in the business and will patiently answer all questions to help you.

Target What Is Hurting Your Credit

Credit can decrease or not be as strong as we would like because of many different factors. Here is a quick list of some of the more common causes.

  • Making payments late or missing them completely
  • What kind of current debt is tagged to our name
  • Types of accounts
  • Length of those accounts

The goal is to have as high of a credit as possible. This may not seem like a big deal to most, but a healthy credit can save thousands of dollars when buying a home.

The Best Ways To Boost Your Credit

30% Rule

So most people know the simple rules to follow like make payments on-time and in-full. Just as significant things to consider are concepts like the 30% rule. It is best to let accounts get to 30% of the allowed balance and then pay them off when it is time to make a payment.

Automatic Payments

Another solution is understanding healthy payment habits. Of course, make payments on-time and in-full like stated above. That being said I understand that life is crazy and people can forget about things like paying bills. Good news is that many businesses and banks offer automatic payments, so the task of remembering is excluded.

Make A Budget

I also understand that most people reading this are intelligent adults, but make a budget for you and your family. Preferably, I like a month-by-month break down, but sometimes more detailed budgets can help us to guarantee we have the money to pay off our accounts. If budgeting is done right then there is a chance that if people have lingering debt then that can be paid down at a faster rate.

Open New Account

One strategy that I preach to my clients is opening a new credit card and using it specifically for gas only. Depending on how much one drives this will be a relatively small dollar amount that makes a lot of credit concepts look a lot better. It is a good thing to prove there is diversity in account type and that they still are paid on-time and in-full.

Patience Is Key

The last concept that is important is patience. Many people don't like to hear that negative information can take years to actually be deleted from account records. Now don't panic. Credit scores can still rise during this time, but a lot of that has to deal with time as well. Be patient as you practice good credit habits.

Practice Makes Perfect

All of the concepts above are crucial to increasing credit score or maintaining a positive score. In order to get the credit score in the perfect place these practices need to happen consistently over time.

I have seen credit scores increase drastically in just a few short months. Those individuals managed to flip the script completely on their financial habits and it showed immediately. Don't be discouraged by debt or an overwhelming number of credit cards. It will all be okay!

Stressed About Your Credit Score?

At Direct Lenders, LLC we are always ready to help you get your credit back on track. We believe in you and want to help you finance your home at the best rate we can get you.

If you're ready to check your credit or figure out what you need to do to increase your score then contact us today. Give us a call at (877) 455-0440 and ask to speak with me.

Loan Officer Chandler Hilton
Chandler Hilton

Loan Officer