Many people do not realize how crucial their credit score is when they are younger. The reason for this is that they do not take the time to educate themselves properly on the benefit of having a credit score. If you live in the Coral Gables area and are trying to find viable ways to increase your credit score quickly, it is wise to consult with a mortgage broker in Coral Gables. By doing this you can find a way to improve your financial health and be approved for more credit based applications. This will do a great deal for your financial health in the long term. Here are three quick tips to improve your credit score:
Have Less Inquiries.
The key to achieving this is to apply for less credit cards or loans. What is important to understand about this is that these applications each show up and ding your credit report for two years. Thus, it is wise to apply selectively for credit cards. One way to ascertain whether you have good prospects of being approved is to use sites such as CreditKarma.com in order to see the statistical likelihood of your approval. By doing this, you can increase your credit score by not frivolously applying to cards that will not accept you.
Lower Your Debt-to-Asset Ratio.
One of the keys to having a great credit score is to not use more than 30% of your credit card limits. If you do this, you will see a substantial improvement on your credit score in the long run that will make you eligible for more prospective loans and credit cards.
Keep Your Paid Off Accounts.
If you have paid off a card, then keep it open. This will establish a longer credit history, which will also increase your credit score and give you more credibility to lenders. Thus, if you are considering applying for a mortgage in the next few years, this is an ideal way to get your credit report ready to be approved.
If you have not maintained your credit report properly up until this point, do not fret. The key is to recognize your mismanagement and to actively do something about it. By doing this, you will be able to use these three quick tips to improve your credit score to your advantage, which will be a major asset to you in the long term because you will be able to be approved for mortgages or auto loans that you would not have been considered for previously. Thus, if you do your due diligence and raise your score, you will be grateful in the long run for the other options that become available to you.