Priority Lending can approve almost all credit profiles – challenged or strong. But naturally, the higher your credit score is, the more options are available to you, and you are likely to be approved for higher amounts of money. Improving your credit score can be a slow process but has many benefits in the long run. The following are a few tips that can help.
Pay your bills on time
Paying credit card bills on time goes a long way in improving the credit score. Not many people know that almost 35% of the credit score is based on their payment history. Therefore, making timely payments can turn around their credit score substantially.
Avoid applying for a loan at too many places
When you apply for a loan, your credit score gets checked. This process is known as a ‘Hard Check’ and it reduces your credit score. While this process does reset every month, large numbers of requests, especially over longer periods of time take more time to reset. Priority Lending is responsible with your credit application – we learn about what your profile is before we even check it, and only send it to a few lenders who are likely to give you an approval that works for you.
Maintain Low Debt Utilization Percentage
Debt utilization ratio is another factor that affects the credit score. A high percentage in your account indicates that you are having issues managing your current debts and will affect your credit score.
Check your Credit Report Periodically
You should ask for your credit report from time to time from agencies like Equifax. By looking at the report, you will be able to understand your financial mistakes and correct them before they snowball into a big problem. When you check your own credit, it is considered a ‘Soft Check’ and does not reduce your credit score.