Actions that will increase your credit score the most
It’s not always easy to know what to do to increase your credit score quickly. This post highlights some key actions that will give your credit score fast boost. We know that making payments on time and that keeping up with your debts is a great idea, but what actually improves your credit score most and fastest? Well, we have a few things that credit bureaus look for more than anything else when determining your credit score. If you are looking to improve yours, read further.
Low-Limit Credit Cards
One great idea for paying off your debts is to pay your low limit credit cards first. These reduce your debt load fastest, and look better. If you have a credit card with a $2,000 limit and $1500 of that maxed out, pay it off before you pay off a $5000 card with a $2,000 limit. It just looks like a bigger debt. Plus it is better to have 2 credit cards of $1000 limits paid off than many cards paid in halves. You can achieve this by putting more money towards the card with low limit while still maintaining, at least, the minimum monthly payment on other cards.
These are counted against your debt-to-income ratio, and they often hurt. However, if you can pay them off as quickly as possible, it does help to know you can do a lot of good. By keeping up with them, it shows bureaus that you are responsible with your finances and that you are going to make good financial decisions whenever possible.
Pay your mortgage on time
Above all else, paying your mortgage on time is the most important thing you can do to improve your credit score. Nothing else is even close to as important as paying this in a timely fashion every month. While you should pay everything on time, it does stand to reason this is the most important thing to pay off at all times.