It’s important to have a good credit score for many reasons. People with high scores are more likely to be approved for loans, get lower interest rates on those loans, and also purchase homes or vehicles at an affordable price.
If you are looking for a way to boost your credit score, here is the best advice. You can always consult an expert like Credit Repair of Orlando if need be.
Limit Your Hard Inquiries
There are two types of credit inquiries that you can make on your credit report. One type will hurt the score, while the other does not affect it at all.
The more inquisitive among us might find using a “Soft” Inquire useful when making major life-changing and financial decision – like finding out what potential employers think about our credit score before accepting an offer from them.
A hard inquiry can affect your credit score (but not always). Hard inquiries include applying for a credit card, a car loan, etc. This is because it increases the number of times you have applied to borrow money and this will show up as an increased risk factor which in turn affects your overall scores.
A hard inquiry can make it difficult to secure credit because a lender may think you are in financial trouble and will charge higher interest rates on loans. A soft inquiry, however, does not show up as an application for credit but only looks at your report.
When you apply for credit, your bank or creditor will check to see if you are eligible. This usually involves a hard inquiry on your information that may stay with your report until it falls off automatically after two years and is no longer counted against the total number of inquiries in any given time frame.
To protect yourself and maintain high credit worthiness, make sure that any time there’s been a change on how much money gets borrowed from other people like opening new accounts with banks, applying for another car lease or buying insurance policies – these are all considered “hard” enquiries-you should wait 60 days before doing anything else until they’ve gone off your report which makes them soft instead of hard.
You have four types of credit accounts on your credit report, and the category dictates how much weight it will carry in determining your overall score.
- Real Estate Loans
- Installment Loans
- Credit Cards
- Retail Cards
Credit cards are not a bad thing if you use them wisely, but they can have a significant effect on your credit score so be sure to keep using other types of loans as well! Having too much in one category will hurt more than help because everything is weighed equally; different account types should stay balanced for this reason.
Keep One Major Credit Card Account
It’s never too late to start improving your credit score. Having a credit card shows that you know how to responsibly manage money and can be trusted with other forms of financial responsibility, like car loans or mortgages.
No matter what your credit score is, it’s important to get a card that helps you build and improve it. With the right steps, anyone can accomplish this.
Keep Old Accounts Open
Some people close old accounts that they think will help their credit score. This is often because of a late payment on the old account, which can’t be ignored or overlooked.
The old account that you’ve closed may be causing your credit score to rise. Credit Repair of Orlando can help improve it, so don’t worry–you’re not alone.