Raise your credit score by a stunning 200 points

The power of the credit score cannot be underestimated. It can be the deciding factor on whether your loan applications are successful or rejected. Unfortunately, rectifying a poor credit is a daunting task. Most people’s credit fluctuates constantly. And when their credit hit an all time low, they start to panic and look for ways to undo this.

Whether your desire is to create a good credit from the ground up as the case for beginners or you just want to rectify your deteriorating credit score from http://finance.yahoo.com/news/announcing-online-bad-credit-quick-040000419.html, a proper strategy is of the essence. Whichever technique you choose depends on what will fit you, since different people will have varying situations on why their credit is going down or has stagnated at one particular time.

Building a perfect credit is like raising a child where patience is a crucial deciding factor. In pursuit of a good credit, you may have to put in work for some time and the outcome is quite satisfying. Unfortunately, damaging a credit score takes a few missteps or mistakes. On this post, I will offer my ideas and tips you need to follow in order to raise your credit.

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1. Reduce your Debts

  One of the reasons that your credit has stagnated for a while might be because debts are holding you down. Your credit is affected greatly by debt and will remain at an all-time low unless you start clearing the books by paying back what you owe.

Once you have settled all debt, at the beginning the rise of your score will be slow but steady and the desired 200 points on your credit will be within reach in no time.

2. Secured credit cards

These are cards that you have to provide cash down payment before you can use them. Secured credit cards will get you going to gain the 200 points and surpass the mark as well.

The reason why this is a brilliant method to get you the 200 points is because the company you chose to open that specific card accountwith will help you reach your target by pushing your credit line higher.

3. Pay your bills on time

While this might seem like a simple tip it actually has a great bearing on your credit score. Dealing with your bills early has a positive outcome on your score and as such, you should set up Payment Reminders to ensure that credit problems that are associated with late payment while you need funding for education or lack of payment do not negate your score.

4. Sign up for new credit cards

Opening multiple accounts must not be necessarily aimed towards lavish spending but using this as a tool to push your credit upwards. By utilizing a small percentage of your credit card balance you will be strengthening your credit as this will attract several useful points.

If this limited spending and utilization are adopted for a few other accountsand then coupled with other accounts that you have paid off the balance there is no reason why your credit score shouldn’t shoot up.

Conclusion

All the above techniques will help ensure that you establish a good credit. Educating yourself by doing some research about your current credit score will arm you with the know-how of how your actions affect your credit. By ordering your credit reports and analyzing them you can have a target to aim for.

Once you have gained the 200 points on your credit, it does not end there as you can learn how to maintain it and strengthen it over time.