How Can I Improve My Credit Score?
The importance of your credit score should not be underestimated. It is an essential tool used to peek into your financial behavior, even as a business owner. Not only does it have a good use for you, it is valuable for lenders and suppliers, to name a few.
Understanding the importance of your credit score will help you, as a business owner, open the financial doors that your business may need. Having a healthy credit score is good, but maintaining it and improving it is even better. This can pay dividends when you utilize it for your business.
1. On-time Payments
Perhaps the most sound and practical way to improve your credit score is to pay your bill on time. As simple as it may be, this is a great start to enhancing your credit score. It can be easy to lose track of your payment dates causing you to miss a payment.
Missing a payment can harm your credit score. Over a period of time, it can lower your credit score, which you worked hard to build on.
What is considered into your credit score?
Payment history
Amount Owed
Types of credit in use
Open accounts
Length of credit history
2. Dispute Credit Report Errors
It is not uncommon to find an error on your credit report, or reports, in some cases. Some of the most common errors that could be on your credit report are identity errors, incorrect account status, and data management errors.
By disputing the credit report errors, then you eliminate the anchor that is holding down your credit score. As of now, the three major credit bureaus allow free weekly credit reports. This allows you to do a critical analysis.
Need to dispute an error on your credit report? Contact us at:
3. Have a Low Credit Use
Usually more easier said than done is keeping your credit card use percentage low. What does this mean exactly? It is recommended to keep credit utilization to 30%. For example, if the credit limit is $1,000, then it’s advisable to use only up to $300. If you feel that the current 30% is low in correspondence with your credit limit, then it might be time to raise it (as you see fit).
Improving your credit score is essential, especially if you’re a business owner. It is a factor that plays a role when it comes to the ability of obtaining a loan or significant purchases.
At Capifinders, we can help you reach your financial goals. We’ll be more than happy to get your credit score on the right track. Not only will your credit score be repaired, but we’ll advise your on how to keep it healthy. Contact us (link)
