Summary: Improving your credit score might sound like an impossible task but with proper guidance and financial planning you can significantly improve your market credibility. In this post I have outlined 4 expert tips on how to increase credit score within a short time.
Are you concerned about your dwindling credit score? Do you know how you can go about increasing your current score in order to ensure your financial stability? If your answer is a resounding ‘no’, then here’s some good news for you! Frankly speaking, there are several financial advisers you might come across while searching for a credit solution online. But, let me tell you, most of these so-called ‘success tips’ will only offer a superficial look into the subject matter and mostly touch upon the fringes of the problem that you are facing right now. I have systematically categorized the major and the minor issues concerning credit scores and hereby offer you the best 4 tips after culling the less important ones from my list. Read on to know my 4 tips below and start improving your financial credibility in the business sphere.
- Keep your payment history spot-free
According to Cafe Credit, payment history is by far the most crucial part of your financial credibility. In reality it accounts for a total 35% of you ‘FICO credit score’. For those who don’t know what ‘FICO credit score’ is, let me tell you that FICO (short form of Fair Isaac Corporation) usually divides credit scores of individuals into 5 different criteria and these are – your payment history, your length of the credit history, the new credits that has been approved, the type of the credit that you have applied for and the amount you owe to the market (person/lending organisation). My suggestion to you is, make sure that you make your payments regularly. At least make a minimum payment within your scheduled repayment date and never skip it altogether. For if you miss your payment dates altogether, your account will surely go to the collections and this would inadvertently drag your FICO credit score down! You wouldn’t want that to happen!
- Prolong the credit history as much as you can
Do you know that if you’re able to pay even a small portion of your credit amount each month and thereby show overall responsible credit behavior this improves credit score? For those of you who do not know, a total of 15% of your FICO credit score is devoted to maintaining immaculate credit behavior throughout the year. So try to prolong your personal credit history to negate changes.
- Ensure steady flow of fund for seamless credit score improvement
You might ask “how is that possible given the current financial doldrums that my company is going through?” My answer is “yes”. There are several programs run by the government to help start-ups and SMEs ensure financial stability and improve their credit score overtime. If you own a small business trying hard to make ends meet in the today’s highly competitive marketplace, I would advise you to obtain a GSA Schedule contract authorization. One of the many GSA Schedule Contract Advantages is helping your company get long-term government (federal) contracts and thereby boost your company revenue over the years. This in turn would help you meet your credit payments in time and improve your financial credibility.
- Mix up your credit sources, maintain a varied blend of your credit
A total 10% of your ‘credit score’ comes from the different forms of credit that you have taken so far or applied for recently. Do you have only 1 type of credit, for example, credit cards? Then it might limit your credit score! Make sure to convert your outstanding debt from credit card to a business or personal loan. You will see a jump in your overall score as because your ‘credit score mix’ will improve overall.
Now that you know the secret tips, go ahead and make it happen. Obviously some of it, for example using the GSA Schedule Contract Advantages to boost your business standing and hence boosting your personal credit standing is simply an out-of-the-box tip which you’ll not find anywhere else. But if you remember I mentioned right at the beginning that I have culled the trivial ones and focused only on 4 expert tips that are meant to stand out from the usual clutter that you’ll read online. So follow these tips and improve your financial creditability within a year.