February 18, 2022 –Hispanic Solutions Group
No one is immune to the importance of a credit score. It is generally known that the average credit score in the United States is 711. This score falls into the “good” category. But this 711 credit score isn’t great, considering the highest score is 850.
When it comes to managing credit scores, there is always room for improvement. However, many people do not know where to start. In fact, one in five adults in the United States has no credit score at all. According to specialist studies.
Today we show you five strategies that will increase your credit score.
1. Pay everything on time We start with one of the most important strategies for building credit. FICO and VantageScore, two of the largest credit rating companies, place the highest importance on the timeliness of your payments. If you’re even one day late on a payment, it will stay on your credit report for seven years if reported.
At a minimum, you must pay the minimum amount required for each bill. This habit will prevent your credit score from lowering.
2. Pay bills strategically If you’re having trouble paying your bills, you may need a more strategic payment system. This means that you must match each invoice with a paycheck. And you need to know when you pay each bill.
You must follow these four steps:
1. Check each day you receive a paycheck from your job(s).
2. Calculate how much money you will receive with each paycheck.
3. Choose which recurring bills should line up with each paycheck.
4. Dedicate the money you receive with each paycheck to your corresponding bills.
3. Limit your use of credit Another way to help improve your credit score is by using less credit.
This strategy may seem counterintuitive, but it demonstrates three things to your lender:
1. You can pay for some items with other forms of payment, such as cash or debit.
2. It is not necessary to use a lot of credit to make purchases.
3. You can cancel your lines of credit as you use them.
4.How much credit you should use In general, they recommend that you use less than 30% of your available credit. This rule applies to all lines of credit. The amount of
The credit you are using is the second most important factor in calculating your credit score.
Therefore, you must constantly be aware of the amount of credit you are using.
5. Control your debt If you have a high debt-to-income ratio, it’s time to take control. While the credit bureaus may not be able to see every dollar of debt you owe, they can see how much debt you owe on your credit accounts.
Debt doesn’t have to be a bad thing. Responsible use of debt can raise your credit score.
debt over time
Another important factor to consider is the amount of time you have been in debt. With every source of long-term credit, you likely have monthly payment dates.
As long as you pay the agreed amount on these dates, the debt will not affect your credit score. This means that large amounts of debt cannot affect your credit score as long as you follow the contract you signed.
You vary your accounts responsibly You may have heard the phrase
“Don’t put all your eggs in one basket.”
This saying also applies to credit. Having multiple credit accounts may seem like a bad thing, but anything is good in moderation.
Apply for credit
To avoid lowering your credit score, you should apply for new credit slowly. This strategy means that, for now, you may want to stick with one credit card.
You should also keep in mind that you should not apply to too many lenders at once. You may want to receive offers from multiple lenders, but each lender will obtain a credit report. The more credit reports people get on your account, the lower your credit score will be.
If you have any questions related to finances, credits in the United States and other related issues, but do not know who to turn to, contact us by going to Hispanic Solutions Group, writing to firstname.lastname@example.org.
If you need to make an appointment you can ask here or accessing financial information on YouTube, the credit channel, our specialists in charge Jessica Aliaga-Froelke will be informing you of any concerns regarding this and other financial issues of general interest and guidance as in this topic, today we provide you with the following report so that you can make your most important economic decisions, also himWe invite you to follow our social networks: LinkedIn, Facebook, Twitter, tiktok and instagram.