Ways To Build Up Your Credit Score

Having a perfect credit score can make the difference between getting your dream home or not being able to buy anything nice because you’ll never qualify for any kind of loan without one.

The best way to build up your credit score is by paying all of the bills you’ve owed on time. If this seems too overwhelming, seek help from Credit Repair San Antonio and they’ll get through it with ease.

Limit Your Hard Inquiries

You can find two types of credit inquiries on your credit report that could affect you. One will hurt your score and the other won’t; it’s up to you which type is in your best interest.

Soft Inquiry: A soft inquiry doesn’t affect your credit score, so you don’t have to worry.

Hard Enquiries: These inquiries can affect your credit score (but not always). Hard enquires include applying for a new card, car loan etc.

If you’re curious about your credit, it’s essential to understand the difference between a hard inquiry and a soft inquiry. A hard inquiry shows that someone is applying for new credit while a soft inquires only looks at your report without actually being used in decision-making process of any type.

How many hard inquiries are too much? Hard inquires on your credit report can be a little tricky. Generally, it is recommended to keep them below two for any given 24-month period because after that time they don’t count anymore.

Did you know that when a potential lender sees too many hard inquiries on your credit report, it can negatively impact their decision to grant you with an approval.

The credit report is a key element in your financial life, and knowing how to read it will help you make smarter decisions. There are four types of accounts on the list:

  • Real Estate Loans
  • Installment Loans
  • Credit Cards
  • Retail Cards

If you’re in the market for a house, your credit score should be one of your top priorities. You need to keep track of every activity on this account as it will impact how much money you can borrow or even if banks are willing enough to work with you at all.

Keep One Major Credit Card Account

Sure, people with poor credit eventually have it tough. But you should always aim high! Having a credit card shows that you’re trustworthy enough to be given one in the first place.

Keeping in mind the importance of a good credit score, many people with bad credit are looking to get themselves new cards.

Keep Old Accounts Open

Old accounts are no longer the golden ticket to a good credit score. So when you’re looking down at your account list and see an old, inactive card that once carried some clout.

If your credit score is not what you want it to be, a quick fix could be shutting down old accounts and starting new ones. This will help with the 15% of your FICO that comes from length of time on file as well as give you more opportunities for positive scoring factors like balances below 30%.

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