If you are after generating wealth, it starts by having an excellent credit score of 760+ to earn maximum points and get approved for more loans as good credit bears more weight today than it did years ago. People tend to use the term “credit score” freely but be warned; improving your credit score is just one part of the credit underwriting process because not
only does market leader FICO have its versions of scoring, but various financial institutions also have their own custom credit scoring strategies that use the generic score as a variable.

For instance, your bank can use your account performance in its custom lending score, and it could significantly impact the bank’s lending decision if you have frequently gone overdraft on your checking account. Secondly, while there are ways to recover your credit score after you file for bankruptcy, but it will remain on your credit report for a period of
7-10 years, and regardless of your current rating, some lending institutions have rules that automatically reject someone with a prior bankruptcy record.

But, don’t let this discourage you much, because unlike rich folk who have higher than average incomes including various ways to generate revenue, you, on the other hand, need a credit restoration strategy to help you splurge away on things that you need most – like
a home. Here’s how to boost your credit score point total:

Check your credit reports and pay off all delinquent accounts

If you are unsure what your credit score is, you can check online or with your credit card company, since some offer a free credit score. The main variables that go in your credit report include:

● Credit payment history
● Debt-to-credit utilization
● Length of credit history
● If you have multiple credit card accounts or are opening new credit accounts to
increase your debt-to-credit use

Check for credit score errors

It is not uncommon for creditors to make mistakes with reporting even if you may have never missed a credit card payment. In fact, according to a Federal Trade Commission survey on Americans’ credit scores, 1 in 4 Americans actually finds errors on their credit report, which is why it’s imperative to utilize the expertise of a credit restoration agency
who will look for erroneous mistakes. With proof that your credit information was incorrect, credit bureaus will remove them from your report, which will later be reflected in your credit score.

Lower your credit ratio

This is the amount of your credit card balance to the credit limit that makes up 30% of your credit score. Having a streamlined credit utilization history shows lenders that you won’t default on your payments since part of your monthly income goes to paying off debts. The best credit ratio would obviously be 0% on a good day but, aim to keep your
balances below 30% of the total credit available to you since anything above that may cause your credit score to drop.

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