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Are you still trying to think of a good New Year’s resolution? You should consider making raising your credit score your resolution for the new year. Having a higher credit score can benefit your life in many different ways, including making it easier for you to be approved for financial products, employment opportunities and housing. Raising your credit score is simple once you know what you should do. Here are some techniques that are effective at increasing your credit score.
Bring Past Due Accounts Up To Date
Having past due accounts can be devastating to your credit score, as 35% of your credit score calculation comes from your payment history. If you have any accounts that are past due, make a plan to bring them up to date as quickly as possible. Start with the accounts that you have been putting off for the longest time, as these ones have the biggest effect on your credit score. Even if it takes you several months to catch up on the payments for all of your accounts, you will be in a much better position with your credit score when everything is up to date.
Request A Courtesy Adjustment
If there are only one or two past due payments on your account, you may be able to get the creditor to remove the delinquencies from your credit history by asking for a courtesy adjustment. Many creditors will remove the late payment from your credit report if you’ve been a good customer and only have one or two late payments on your account. Having these items removed from your credit history will give you an immediate boost to your credit score.
Reduce Your Debt To Credit Ratio
Reducing your credit to debt ratio is another effective way to increase your credit score. Your debt to credit ratio accounts for 30% of your credit score calculation and the lower the ratio is, the higher your credit score will be. There are several ways to approach reducing your debt to credit ratio. You can pay off your existing debts, apply for additional credit, or transfer expensive credit card debt to a personal installment loan. The method chosen will depend on your current financial situation and your perception of the best course of action to take. Some people find it easier to focus on using a single technique while others uses a combination of all three methods.