If you are in dire need to boost your credit score and need that VA loan badly to meet your immediate demands, there is good news and there is bad news. The good news is that improving your credit score is possible. The bad news, however, is that there is no “quick fix”. And, if somebody says that he or she knows one and can help you to do this, beware! Because you are about to fall victim to a scam or fraud that will put you in more trouble instead of helping you escape your already existent problems.
Improving Your Credit Score Strategies
Following are a few strategies that will help you in improving a considerably low or bad credit score:
Eliminate Credit Card Balances:
It is very important to keep a check on the credit card balances. You must know the ratio between your revolving credit and the amount you are spending. This will help you in maintaining a good ratio, which will be easier to meet by the end of every month. It is unwise to keep small balances with the expectation that you will get rid of them soon. Piling them up will lead to a poor balance of the ratio and a worse credit history. The best strategy is to free yourself from a number of cards by paying all the balances and keeping just one or two for your expenditures.
Keep a Check on Credit Report:
You might not realize but it is very important to keep a check on your credit report. Ask for a copy every now and then and have a look at your credit history. This will help you in understanding how you can improve your credit score in the future.
This will also make you see if there are any errors present in the report. The people who work on it do not have any personal grudges toward you; it’s just that humans are prone to making errors. A small mistake by somebody can hinder your journey towards achieving a dream. Check if there are any incorrect late payments or inaccurate owed amounts listed for all your accounts. You need to ask them to correct all the mistakes immediately.
Setup Reminders for Payments:
Make sure to pay all your bills and make your credit payments right on time. Late payments give a very bad reputation to your credit history. The best solution to meet all the deadlines is to set reminders for them. You can do this through emails or text messages. Read this article for more practical tips on improving your credit score.
Don’t Hint at Risk:
Do not go for loans or investments that hold a higher chance of risk. Being smart while making financial decisions requires you to take small safe steps instead of plunging into something big that will bring such a bad impact on your credit score, that only a decade will be enough to bring some improvement it.
Under-use Your Cards:
Go more on cash and use less of the credit card. Otherwise, you’ll portray an image of yourself being a spendthrift. If you are not in the habit of carrying cash around, it’s never too late to adopt new ones.
The trick is to not obsess with your credit score. Above-mentioned points will help you in devising a neat strategy to get your hands on the loan that you really want for your dream house, dream car or a dream vacation.