Ways To Build Up Your Credit Score

Having an optimum credit score can be the deciding factor for whether or not you’re able to buy a house. With every lender’s requirements being different, it’s important that your report is free of blemishes and errors.

Your FICO Score is one of the most important financial records we have so make sure it’s up-to-date by following these steps.

Limit Your Hard Inquiries

There are two main types of credit inquiries on your credit report. One can hurt your score, while the other does not. The first type is a hard inquiry and includes inquiries from banks for new loans, or those who want to extend lines of credit with you in order to take out.               The second kind is easy enough: any

The soft inquiry, also known as a “soft credit check,” doesn’t affect your score.

You might have heard that a hard inquiry can hurt your credit score. Hard enquiries include applying for a car loan or opening up an online business account with Wells Fargo – anything where somebody has asked to see what their financial picture looks like before deciding if they want in on whatever deal being offered.

If it’s a hard inquiry, then this is an application that was submitted and accepted by lenders; if it’s soft though, there may have been another reason why they were looking at your information like checking to see how much debt you already had or assessing what kind of person you might actually be.

It’s important for your credit to keep inquiries under two. After 2 years, you can have a lot more hard inquiries without it affecting your score.

You can prevent your credit score from being significantly impacted by hard inquiries with a single click.

Did you know that if your credit score dips below a certain number, lenders are less likely to offer you loans? With only a few points off of the equation, it’s best to avoid too many hard inquiries.

Credit reports have four different categories which will affect your credit score.

  • Real Estate Loans
  • Installment Loans
  • Credit Cards
  • Retail Cards

When choosing a credit card, it’s best to keep your options open and not limit yourself just one type of account.

Keep One Major Credit Card Account

When you get a credit card, it shows that people have enough trust in you to give the card.

If you have bad credit, consider carrying a balance on your card and paying off the full amount every month. This will improve your score drastically in just one year.

Keep Old Accounts Open

Closing old accounts can hurt your credit score. People often close an account because of a late payment, but this will not “disappear” from their report and it could actually have the opposite effect on their credit score.

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