According to CNBC, a credit score is as important to an adult as a GPA is to a student. While a decent GPA serves as a gateway to the finest universities and jobs, adults can unlock a myriad of perks if their credit score soars to 800.
The biggest of these is that you can sit down with your creditor and negotiate your interest rate. You can get your dream car with a prime or super prime credit score. You can even get yourself new car insurance because insurance firms, too, look at your credit score to verify your claims.
A credit score of 800 sounds super impressive doesn’t it? According to CNN, a score that high can help you save up millions of dollars in interest. As reported by the US’s leading credit bureau TransUnion, only 20% of US citizens have made it to the 800 mark so far.
You can join the club too. Read on to know how.
Manage your credit card utilization
If you apply for a house or an auto loan, one of the first things your lender will look at is your credit limit and how much of it is utilized in a given month. According to Forbes, ideally, you should spend around 10% of your authorized credit card limit in order to hit the 800 mark. The lesser you utilize, the higher your creditworthiness.
In order to achieve this, you can go about things in two ways. Either get your lender to increase your credit limit, or keep on paying off your credit debt frequently to keep the utilization percentage low.
Diversity is the key
According to the Huffington Post, you’re more likely to hit the desired FICO score if your credit is spread over a variety of loans. If you have different types of accounts on your credit report, it shows that you’re able to manage credit efficiently. Having different types of loans also makes your credit report less risky compared to just having one. In order to diversify your portfolio, add accounts from mortgages, auto loans, student loans, and credit cards as well.
However, it’s essential that a major chunk of your overall portfolio is allocated to mortgage. These are, by far, the most important forms of loans and are generally paid off by those who are financially responsible.
Seek help from a credit repair consultancy
At times, a lot of inaccurate and unverified queries make their way to your credit report. This outdated and wrong information can greatly hamper your credit score and keep it from going up even if you’re repaying all your liabilities on time. The most common of these are late payments, tax liens, inquiries, and student loans.
This is where credit repair comes in. Credit Repair Specialist San Jose remove all the erroneous items from your credit report. They challenge the lenders and credit bureaus whenever they feel like a discrepancy exists and can be rectified. As a result, your FICO score and overall creditworthiness massively improves.
If you’re based in Southern California, we recommend The Credit Docs. They operate across various locations including San Jose, Bay Area, Oakland, San Francisco, and Stockton. To book their credit repair services, contact them online. You can also give them a call at 408-430-5020.