5 ways to reduce your credit score instantly
This is the most appropriate topic of discussion given the fact that you have already checked out some short cuts and ways written almost a decade before and which does not work for the current times.
Repairing credit is most sought after affair.
In recent times the credit has been drying up faster than you think but it will always be the most sighted thing as a reason to raise your APR.
Here is a list of the five inevitable mistakes you think would work in your favour but they tend to lower your credit score faster than ever.
1.If you pay your credit card balance every month to the minimum possible, your debt would get accumulated to a mammoth size. Your interest amount would be twice as much as your actual amount if you wake up one morning.
2. Do not use your credit cards just keep them as you think they might help you to have some kind of credit history. This would lead to only one thing for sure and that is burying of your credit card and cancellation of your card by the credit card companies.
3. One of my favourites. Pay your age old credit debt and then close the account. Infact, you gave money for reducing your credit score. Inadvertently, you lose on the benefit of your credit card history long created. This affects your credit score adversely.
4. Open new credit card accounts with small balances all around. This would firstly lead to mismanagement of your financial funds and secondly it would make the credit card companies suspicious about your consumer behaviour. This kind of activity definitely gets noted and might even reduce your credit worthiness if not your credit score. Or don’t take debt at all in your life time. Though sounds like a great idea at first, this might be least beneficial in the long run. You can not save your way to glory in today’s times. Debt is necessary for you.
5. Loan consolidation. Believe me loan consolidation beyond a point hurts more than it helps. One thing accepted is the way it merges your debt and makes it easier to manage your funds.
But more important is if you try to consolidate three credit card balances each 2500 Dollars on a single one with zero interest credit card having limit of 10000 Dollars you are basically utilising 75 percent of the credit line and your credit score would see a sudden drop.
How to improve my credit score has always been on your mind. Credit score is not to be taken for granted
You have a better idea of what is good for your credit score and what is really bad. It is not enough to worry about the credit score alone. Have cashflows and improve your paying capacity over a period of time.With this I conclude this article. Hope you enjoyed reading this as much as I did researching and writing it down for the benefit of my readers. Moreover, the absolute importance for you is to have a lineage of credit repair knowledge base to make a thoughtful decision in buying a car or a house or insurance for your family.
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