You should start with the fact that you should not be afraid to check your credit history systematically. Many people think that their every request has a negative effect on the final score due to the fact that the bureau regards such an action as another attempt to take a loan or a loan. And we all know that such frequent attempts and, moreover, the refusals of creditors on them can lower the credit rating. But if you do not check the document too often and clearly for personal acquaintance, such requests will not adversely affect your score.
Once, when I checked my CI again, I was pleasantly surprised that the credit score increased by almost 100 points in just one month! I know what actions I took to achieve such a result and I am going to share my steps, following which you can improve your credit rating. Unless, of course, this is your goal.
Use not all the money that is on a credit card
The main factor contributing to the improvement of my credit history in such a short time was the reduction in my credit use. It’s simple: almost all of us have a credit card, there is an amount on it that you can spend – a credit limit. So, here the credit rating is strongly influenced by what percentage of this amount you actually use. I managed to reduce this figure by 19%.
I did this in two steps: first, I made the last two payments more than the minimum payment. I have always tried to do this, but these times I added another several thousand rubles. Secondly, I increased my credit limit by accepting an offer from my bank. I strongly recommend that everyone not refuse such offers, but you need to be a confident person not to use it – this is important!
Such a proposal, as a rule, the bank exposes itself when it sees that you are coping with your debt load – make payments on time and do not spend all the money from a credit card at zero. Also, you yourself have the right to make such a request to your bank once every 6 to 12 months in order to increase your credit limit. Be sure to observe the following rule: you must use no more than 70% of your credit limit. This means that if you have 150 thousand rubles on your credit card, the balance of this card should not be less than 45 thousand.
All payments must be made on time.
Another important factor is my ideal track record of timely payments. You should know for sure that you have not missed a single payment even for the smallest loan in recent years. For all my credit history, I remember only one delay in two or three days, for which I did not even receive a fine. It is best to set a reminder for each payment a week before the deadline to eliminate any errors.
You can also use the service “auto payment”, which is now offered by all popular banks. If your income is stable enough, and your account rarely drops to zero – be sure to enable this service.
What else can affect your credit rating?
There are a lot of factors that affect your credit score, and their number only increases every day. The two main ones we have already discussed earlier are the utilization of the total credit limit and timely payments. The third most important is the age of the credit history. The longer you use your credits, extinguish payments in a timely manner and responsibly manage your account, the better.
The types of credits that you used have less influence on your CI. Of course, if you took a car loan or, for example, a mortgage, and fully cope with them or cope now – it will increase your rating. And if you occasionally took small loans, and even not immediately returned them – this will serve to reduce the score. Here I would like to say about the requests of your CI, if you make a request yourself – this does not have a negative effect because it means that you are a responsible borrower and monitor the status of an important document. But if banks often request your credit history in order to make a decision on issuing you another loan, such a request will most likely underestimate your credit rating.
Examples to add clarity
The assessment of each of us will change differently when carrying out the same actions. Therefore, here are some examples of how this happens:
– If Dasha has an ideal payment history, but she forgot to pay the mandatory monthly payment, her credit rating will not suffer as much as Maria, who has a long history of late payments in her report. In fact, having a good track record, Daria can turn to her creditor, explain the reason for the delay in payment and ask for a short delay. In turn, in the CI of Mary, almost 100% will be another record that she has committed a delay.
– Hard credit inquiries that banks make to better know about a potential borrower can subtract 5-10 points from your score. In this case, the assessment of Ted, who filled out the third loan application within a month, will receive more damage than the assessment of Dmitry, who submitted only one application.
– For example, Riza and Mary increased their credit limits by 20 thousand rubles each. But at the same time, Christine had 30,000 rubles on his account, which he could spend, while Mary had a credit card at zero. They both performed the same actions, but will get completely different results in their CIs.