4 Steps to Enhance Your Credit

Better job, credit and love life

Better job, better credit, better dating pool

We all know that a high credit score can help streamline life events like buying a house, landing a new job or a promotion or transfer and, yes, even establishing close personal relationship.

But do you know how to increase your score? Try these four moves to give your scores a boost.

Fix Credit Errors — Don’t wait for a lender to check your credit before reviewing it yourself. Request a credit report from each of the three major bureaus every year, reviewing the accuracy of your personal info, credit limits and the open or closed status of each account. Dispute any errors immediately. Understand that open/unresolved disputes will, in many cases, impede your ability to get new credit.

Ask Forgiveness — If you have blemishes on your credit, try clearing them up. Negotiate paying an old debt if the creditor will mark your account “paid as agreed.” For a late payment on a long-held account, write the creditor, acknowledge your otherwise good history and ask for a goodwill adjustment that will remove the negative item it from your credit report. Act immediately upon learning of your oversight.

Make Strategic Repayments — You may not be able to pay off your credit cards quickly, but you can strategically pay them down. Start by dividing each card balance by its limit. Demonstrate moderation to lenders by keeping your credit balance below 10 percent of your credit limit at all times, not just once a month. If your card debts are higher, make a plan to pay the balances down to reach a more desirable ratio. This is particularly true as you prepare to apply for new or better credit.

Increase Credit Limit(s) — Another way to reduce your debt-to-income ratio is to ask for an increased limit. It’s a balancing act; keep your credit balances in check, you will earn a better credit profile resulting in a higher credit score. Your chances of getting an increase on your credit limit are vastly better while your usage of the credit limit is minimal.

What is your credit score? Use this credit score simulator to find out. It’s free and it will give you a very good idea of where your score range is right now.

Caution – Be very wary of credit repair schemes, many are designed solely to part you from your hard earned money. Further, many are just scams. You can easily tell if they are running a scam. The scammers demand cash up-front. This is not legal. Pursuant to the Credit Repair Organization Act (CROA), any credit repair work must be completed before a consumer may be charged for the work.

  • Q – Are there legitimate credit repair agencies?
  • A – Yes, a few.
  • Q – How do you know they are legitimate?
  • A – They don’t charge you a fee until the work is done.
  • Q – They told me there is a little known law they use to magically fix my credit.
  • A – They are lying or under the influence of a liar.

Image attribution

Financially Speaking™ James Spray RMLO, CNE, FICO Pro | CO LMO 100008715 | NMLS 257365 | October 1, 2015

Notice: The information on this blog is opinion and information. While I have made every effort to link accurate and complete information, I cannot guarantee it is correct. Please seek legal assistance to make certain your legal interpretation and decisions are correct for your situation. This information is not legal advice and is for guidance only. You may reproduce this information in whole and not in part, providing you give full attribution to James Spray.

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