Having a good credit rating is really important and can impact your finances in many ways.
For example, a new report shows that 48% of Americans want to increase their credit score this year. A credit score indicates whether you are a trustworthy borrower or a potential credit risk. Suppose you want to buy a house or get a credit card, your chances of approval are greater with a higher credit score.
Unfortunately, black Americans generally have lower credit scores than other racial groups. According to this survey, approximately 54% of black people report having no credit or having a low to average credit score, considered any score below 640. Statistics reveal that a credit score between 300 and 579 is considered bad. .
The 48% of people who want to boost their credit score were reported by The Ascent, a Motley Fool service that reviews financial products to help people make informed money decisions.
Jack Corporal, a research analyst at The Ascent, said BLACK CORPORATE that “Black Americans are less likely than white Americans to know their credit score, according to a survey by The Ascent. “Knowing your credit score is crucial because it can affect your ability to access life-changing financial products. And by knowing your score, you can start taking steps to improve it.
He added, “Having a good credit score can make it easier to access important financial tools at more affordable rates. A good credit rating can unlock better insurance rates, mortgage and auto loan rates, and credit card interest rates and rewards.
Here are some tips based on BLACK CORPORATE research to help you improve your credit score.
Know what your credit score is
Get copies of your credit report to make sure the information is correct. To visit www.annualcreditreport.com, which claims to be the only authorized online source for a free credit report. You can get a free report from each of the three national credit reporting companies every 12 months.
Review your credit report for errors and check it regularly
Sometimes your credit report can include details that shouldn’t be there and lower your score. Such a mistake could be an overdue debt accidentally placed on your account. This is also a good reason to check the accuracy of your report several times a year.
Be assertive and make sure good details are included
If you check your credit report and find that an account in good standing has not been posted, get it changed quickly. Sometimes an account that is in good shape is missed. Consider contacting the creditor and asking for information to be added as this could help boost your overall credit score.
Pay bills on the due date
Dealing with bills on time is one of the most important factors that can determine your credit score. In fact, being on time in paying bills can help boost your score. You might even want to set up a system where your bills are paid automatically, reducing the risk of missing a payment and incurring late fees.