Whether your buying a new car, home or applying for a new job. Your credit report and what’s on it can be a deal breaker. We’re stretching your dollar with how to improve your credit score quickly and efficiently.
What’s your number? According to Deshpande, a low credit score can actually be a blessing in disguise.
“If you’ve got bad credit, that’s a good thing,” said Alok Deshpande, CEO, SmartPath. “Because you can’t borrow any more money and a lot of times that will protect you from your.”
He says there are three things you can do right now to raise your score.
1. Pay your bills on time.
“One bill that’s late as far as the bank is concerned and the credit agencies means that you’re in some sort of financial distress, you didn’t have the money to pay for it,” said Deshpande.
2. Keep you credit use low, preferably below 30 percent of what’s available to you.
“Let’s say that you have a $1,000-dollar limit on your credit card. but you’re using $800. Well what the bank thinks is man you’re using every piece of credit that you’ve been given. that might mean that you don’t have any cash,” said Deshpande.
3. Avoid applying for credit in a lot of different places.
“The more of those that you sign up for the more it looks like you’re going out there looking for money and that’s a concern for credit reporting agencies,” said Deshpande.
Instead, opt for a secured credit card. It works just like your normal credit car, but the limit you get is based on a deposit you put down and the car issuer can pull money from the deposit if you don’t make a payment.
“Instead of focusing on how do I improve my credit. Focus on building the right financial behaviors and the credit will automatically follow,” said Deshpande.