Good Lifestyle

Like many things in life, your credit scoring is pretty easy to flow And a little more difficult to raise. Late payments, expenses beyond your means or the demand for too much credit in a short time are just a few things that can dingate your score or even drop it. But before obtaining all the misfortune and sadness, financial experts say that there are a few surprising ways to strengthen your credit score closer to this coveted 850.

"A higher credit rating means that you are considered less risky and may be more likely to receive favorable loan conditions, lower interest rates and higher credit limits," said April Eick , Rn, financial coach Nurses and health workers from Freebird Financial Coaching. "Having a higher credit score can help you qualify for credit cards with better award programs, interest rates on loans and better mortgage rates. It can also facilitate Renting an apartment or getting a loan for a car or a house. "

But it can be intimidating to build your credit, especially if you have accumulated a debt - and you may not know where to start. According to Eick, it is because there are "many myths and false ideas on credit scores", aggravated by the fact that the means to lift them are not "widely discussed". This is where our experts come into play.

Whether you are about to make a big investment or simply try to improve your credit for the future, financial experts have advice and tips to get it where it should be. Read more to discover five things you may not realize can increase your credit rating.

Read this then: Never use your credit card for these 6 purchases, according to financial experts .

The use of credit, or the amount of the credit you use divided by the amount you are authorized, is a key part of the puzzle. Mathematics seem quite simple, but there is a catch.

"The particular surprise is that this ratio is generally calculated on the date of your declaration," explains Ted Rossman ,, Senior industry analyst For Bankrate.com. "So, even if you pay entirely - which is an excellent practice to avoid interest - you may always have a high credit use rate that can lead to your credit scoring."

"The fixes could include the request for a higher credit limit and / or additional payment in the middle of the month to reduce your balance before the press release even comes out," said Rossman. "Fico says that people with the best credit scores often retain their credit ratio less than 10%. But whatever it is, you can improve your credit scoring by reducing your credit ratio of use of credit . "

Andy Kalmon , CEO of Organization of financial services Benny, recommends contacting your credit card issuers and requesting an increase in your limit. "Depending on your current status, they may not accept, but that doesn't hurt your score if you ask."

"When you increase your credit limit but respect the same spending habits, you effectively improve your credit use score," notes Kalmon. "This has a significant impact on your credit scoring, because it reflects the amount of credit you use in relation to the quantity available for you (and the less you use, the better it is)." AE0FCC31AE342FD3A1346EBB1F342FCB

Another option that is not discussed as often: review your credit report and dispute errors.

"Online banking tools have facilitated the determination of your credit scoring, but when when you really looked at your credit report?" asked Jonathan Petts ,, former bankrupt lawyer and CEO and co-founder of Upsolave. "Your score is a reflection of what is reported by lenders and financial institutions to the main credit offices. If they report incorrect information, this could harm your score."

"Fortunately, you can get your credit report for free at least once a year," said Petts. "You should do it and look carefully at the entrances. If you see an error, contest it."

Julien Brault , CEO of Hardbacon, a Canadian Personal finance management The mobile application also recommends this as "one of the easiest ways for low effort to increase your score quickly".

"Credit reports are made by humans and humans make mistakes, so if you request a copy of your report and find an inaccuracy valid, the office will recognize and modify it in your favor," explains Brault.

Pets says you should look Common inaccules Like the closed accounts that are listed as open, the accounts you have not heard of and the missed payments you know in time, among others.

As a note, your credit report contains details on your credit history, which lenders get via a "hard demand" to determine your level of risk as a customer. This report contains more information that you otherly get services like Credit Karma, where you can request "requests for information" and See your score Without having an impact on your credit.

Read this then: Always use money for these 5 purchases, say financial experts .

No one wants to be a Mooooch, but in the world of credit, it is not always such a bad thing. Become an "authorized user" on someone else's account - especially someone who makes their payments in time - can help you create a credit quickly.

"If you have a friend or family member with a high credit rating, becoming an authorized user on one of his credit cards can help increase your credit rating," said Eick.

Financial experts also have advice that may seem exactly opposite What you should do: contract more loans.

"It seems counter-intuitive to take more debts, but there are certain situations where it makes sense," explains Braul. "For example, if you wear a big balance on your credit card but you make all payments, it may have an impact try to buy a house, as it can help you increase your score if you continue to do all Payments in time. "

Ann Martin ,, Director of Operations For Creditdonkey, suitable, noting that the percentage of debt use and the "diversity of debt" enter into your calculation of the credit rating.

"The use of the debt refers to the total amount of the debt you have as a fraction of your credit limits. Opening a new line of credit, especially if you do not withdraw as much money, maybe An excellent way to improve this ratio of use, "she said." In the same way, the opening of a new type of debt will increase your credit scoring. If you have a credit card, find out a personal loan, for example. "

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It may be tempting to close credit cards that you do not use as much or those that collect (literally) dust on the back of your wallet. But Brault advises it, because these mature credit cards play a more important role than you think.

"Keep all former credit accounts, even if they seem bad. Several factors, including the age of your credit, calculate your credit scoring. Therefore, older credit is in fact important for your score, and As long as you keep them open, they do it positively your score as they age, "explains Brault.

These cards also contribute to this significant use of credit, as it simply adds the total credit that you have allocated each month.

Best Life offers the most up -to -date financial information for high -level experts and latest news and research, but our content is not supposed to replace professional advice. Regarding the money you spend, save or invest, always consult your financial advisor directly.