Here’s how to increase your credit score from 480 to 700

You can increase your credit score from 480 to 700 by following some of the steps listed below.

Your credit score is your financial gateway to getting the things you want in life. Your credit score is used for the following; When you buy a car, you rent a car, you rent an apartment, you buy a house, you buy college loans, you buy the newest computers and electronics, and it is also used by insurance companies when you need insurance.

Credit scores range from 300 to 850 and any score below 500 is considered a higher risk for lenders. Trying to maintain a score above 700 will improve your chances of obtaining a loan for larger purchases, such as a car or home. With a higher score, you can get better interest rates and better terms for your loans.

Get a 3-to-1 credit report

Go to Creditreport.com to get a free copy of your credit report. You want the 3-to-1 so you can see the full report from all 3 credit reporting agencies. Check your report for inaccuracies, such as someone else using your credit or anything that shouldn’t be there. This could be identity theft and should be reported immediately.

Make sure each of your creditors has reported their information accurately. If you find there are errors, compose a letter and mail it to the credit reporting agency along with any evidence to support your dispute. You want to remove this inaccurate information from your credit report as soon as possible.

Consolidate credit cards

Transfer balances from cards with higher interest rates to cards with lower interest rates. This will lower your credit score by getting rid of too much debt.

Inspect your finances

Gather all your finances. Find a place where you can squeeze in, say, an extra $ 100.00 each month. Take this money and apply it to the credit card with the highest interest rate each month until you pay it off. Then take that money and pay off the next highest interest rate credit card, and so on.

Avoid the upper limit of credit cards

Having a credit card to the max can lower your credit rating. A good benchmark only has 30% of the maximum amount available on the card. If you have a credit card with a balance of $ 1000.00, keep the amount on that card around $ 350.00 to improve your credit score.

Pay your bills on time

Make sure you consistently pay all your bills on time. Paying your bills on time is one of the main things credit bureaus use to calculate your credit score. (35% of your score is based on payment history)

Pay more than the minimum due on each credit card, paying only the minimum due is a sign that you could be late on your payments and can be a high risk.

Close unused credit cards

Simply destroying your cards doesn’t work. You must call the credit card company and request that your account be closed so that it no longer appears on your credit report. This will help increase your credit score.

Refrain from requesting more credit

Each inquiry is reported to the credit bureaus and multiple inquiries can negatively affect your score. If there are no inquiries for a 2-year period, lenders are more willing to extend credit, trusting that you will not go overboard and stop paying your payments.

Using these helpful tips can help you build your credit over time.