March 2, 2020

Improving Your Credit Score



Improving Your Credit Score

In today’s world, a good credit score is essential. The higher your score is the more likely you are to qualify for credit cards and loans with better borrowing terms. When these terms are better, you are able to save money in the long run. The fact that people can have more than one score is confusing, so understanding how calculation happen is important. Of the average three scores, a mathematical algorithm applies itself to one of them to calculate it. According to Experian, the average score ranges from 300 to 800. Most scoring models take into account five different aspects of credit when calculating it. Those include payment history on loans/credit cards, how much revolving credit regularly used, how long you’ve had accounts open, the types of accounts you have open, and how often you apply for new credit.

Steps to Getting a Higher Score

There are five steps you can take to improve your overall credit score. First, it is important to make sure you pay all of your bills on time every time. Determining how reliable you are in regard to paying your bills on time is an important factor in determining your credit score. Second, pay off debts as soon as possible and keep balances low on credit cards. Credit scores use the credit utilization ratio to determine your specific score. The credit utilization ratio is calculated by adding all your credit card balances at any given time and dividing that amount by your total credit limit.

Third, only apply for new cards when its absolutely needed. When you constantly apply for cards to have a better credit mix, it actually can decrease your credit score. Fourth, do not close accounts for unused credit cards. Closing these cards can result in negative effects on your credit utilization ratio. Fifth, make sure to dispute any inaccuracies that occur on your credit reports. Inaccurate information can bring credit scores down, so it is important to make sure all information on your credit reports are accurate and up to date.

Mediator Debt Solutions Approach

Mediator Debt Solutions offers personalized approaches to debt settlement so you can get a fresh start on improving your credit score. In just four short and simple steps, you can reach your debt free goals in as little as 12 months. First, clients meet with a specialist to figure out the best debt relief option for them. Once a plan has been decided, the client quits paying interest and begins depositing payments into a special savings account. The specialist then negotiaties with credits on their clients behalf to get their credit balances drastically reduced. Once they decide on a pay off balance, if there even is one, the funds from the special savings pay it off. The MDS specialists work hard and stay by your side every step of the way to make sure this process is as easy as possible for their clients.