Top Three Tips
To Improve Your Credit Right Now
Over the past several decades, credit has become the backbone to our financial system. Having poor or even less-than-perfect credit can keep you from reaching your financial and life goals, for yourself and your family. Coulter Credit wants to help! We’re excited to share with you our Top Three Tips to improving your credit. These tips can help you improve your credit history and scores, and save you thousands of dollars every year!
Pay Down Your Revolving Accounts
Are one or more of your credit cards maxed out? Are you only making minimum payments on the store credit for your TV or couch? Credit cards, retail credit (aka store credit), home equity lines of credit (HELOC), and any other credit account that renews automatically each month are known in the industry as “revolving” credit. Accounts like these make up 30% of your FICO score! FICO “grades” these accounts based on how high your balance is. The ideal balance for a revolving credit account is 1-9% of its credit limit. Paying down your revolving credit accounts to that “Grade-A” range can have a giant impact on your credit score! You can see improvement on your very next credit report.
Use the Credit You Already Have
Many people assume that simply getting a new credit card without using it will improve their credit score. Not so! FICO looks at your balances, so when your balance is zero, FICO omits that account from your “utilization ratio” (that is, how much of your credit you use). FICO determines this ratio by comparing your total balances to your total credit limits. Therefore, keeping your balance at zero causes FICO to leave out your entire credit limit for that account when it figures your total “available credit”. For example, by not using that “rainy day” credit card with a $1,000 limit, you’re actually preventing up to $990 (99%) from counting toward utilization ratio!
Pay Off Your Charged Off Balances
The thing to remember about an overdue balance is that it still counts as an overdue balance whether or not the account is charged off. The fact that the account has been reported as a loss (a “chargeoff”) makes no difference in that regard: overdue is overdue. Leaving a chargeoff open only makes it worse! On the other hand, paying off or settling the overdue balance of a chargeoff can make a huge difference, as that should stop it reporting as “open” with an outstanding balance every single month. The sooner you can stop the account from reporting as overdue, the better!
So What’s the Catch?
Why would we “give away” these valuable tips? Firstly, because we care! The reason Coulter Credit exists is to help everyday people improve their credit and achieve their dreams. But, secondly, if you reach your goals just by performing these tips, you might not need credit repair at all! We’re not in this business to waste your time and money. However, should you decide that these strategies aren’t helping enough on their own, we trust you’ll remember where you got them and give us a ring. The fact that you’re already employing a few of our methods before you even start our credit repair and credit building programs only saves us time and you money!