How to bring your credit rating to 800 points - ForumDaily
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How to bring your credit rating to 800 points

Фото: Depositphotos

Company Experian creates a credit score that evaluates—ranging from 300 to 850—your creditworthiness and how it relates to your credit report. The rating is based on data from FICO and other credit history assessment systems. Thus, a score of 300 to 579 is considered “very poor,” 580 to 669 is “fairly good,” 670 to 739 is “good,” 740 to 799 is “very good,” and 800 or higher is “exceptional.”

With a rating in the “exceptional” range, you can get the most favorable credit offers. In addition, you can get credit cards with 0% - the rate, save thousands of dollars on a mortgage and raise the level of the credit limit on your accounts. Below are a few steps to help you improve your credit rating.

1. Learn general information

In order to get a credit rating in the 800 range and above, you first need to figure out which mark on the FICO scale you are now. Once a year you can request a free annual credit report from the three leading credit reporting companies in the country. If you find any issues in the report from Experian, Equifax or TransUnion, you should take steps to solve them.

2. Create a long credit history

Lenders usually rate borrowers with short credit histories as more risky. To get 800 points in your credit rating, you need to create a long credit history. Therefore, keep your old accounts, even if they are with zero balance and you no longer use them.

3. Pay your bills on time

When it comes to improving the credit rating, the payment history becomes a very important component. Paying your bills after the deadline, you reduce the total score in the credit rating. Use the service of automatic payments, then the necessary payments on your accounts will be made on time.

4. Redefine credit card use

Thirty percent of your credit account consists of a credit utilization rate, which is your debt divided by the body of your loan. As a rule, you want your credit utilization ratio to be 30% or less, so if you have a credit card with a limit of $ 1000 dollars and you have to pay $ 300, you are on the verge of a limit. If your debt increases, then this can negatively affect your credit rating.

5. Diversify your accounts

Diversifying accounts can also help strengthen your position in a credit rating. This does not mean that you have to open 10 different accounts. This means that you should divide your loan into different needs, for example, a mortgage loan, a study loan, a car loan or a credit card.

6. Cut costs

One of the steps that can bring you closer to the cherished 800 credit rating points is a smart budget allocation and cost reduction. Despite the fact that your income does not directly affect your credit rating, still try to live on the money you earn. Try to reduce unnecessary expenses, such as an expensive meal or a subscription to cable channels that you rarely watch.

7. Do not act as a guarantor for other people's loans

If you take responsibility for someone's credit, then you risk that the person for whom you vouch for will not be able to service your credit, and this may affect your credit rating. If your goal is an “exceptional” credit rating, then try to evade this responsibility. Also inform the bank in time about the lost or stolen credit cards. If you do not do it on time, you risk liable for unauthorized purchases, which will also lower your rating.

8. Limit the number of hard credit inquiries

When you—or someone else—submits a request for credit information, it does not affect your credit score. A soft request includes information such as checking your credit account status, allowing a potential employer to check your credit history, and companies checking your credit limit. A hard request refers to information the company requests for your mortgage or card loan. Try to limit the number of such inquiries as it directly affects your credit rating.

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