As such, a new report shows 48% of Americans want to increase their credit score this year. A credit score shows if you’re a trustworthy borrower or a potential credit risk. Say you want to buy a home or get a credit card, your approval chances are greater with a higher credit score.
Sadly, Black Americans generally have lower credit scores than other racial groups. According to this survey, some 54% of Blacks say they have no credit or a poor to fair credit score, deemed any score below 640. Statistics reveal that a credit score between 300 and 579 is viewed as poor.
The 48% of people who want to beef up their credit score was reported by The Ascent, a Motley Fool service that reviews financial products to help people make informed money matter decisions.
Jack Caporal, a research analyst at The Ascent, told BLACK ENTERPRISE that “Black Americans are less likely than white Americans to know their credit score, according to a survey from 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 begin to take steps to improve it.”
He added, “Having a strong credit score can make it easier to access important financial tools at more affordable rates. A good credit score can unlock better insurance rates, mortgage and auto loan rates, and credit card interest rates and rewards.”
Here are some tips based on BLACK ENTERPRISE research to help improve your credit score.
Know what your credit score is
Get copies of your credit report to ensure the information is correct. 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 firms every 12 months.
Examine your credit report for mistakes and check it regularly
At times, your credit report might include details that should not be there and cut your score. One such error might be a delinquent debt placed on your account accidentally. That is too a good reason why you should check your report several times a year for accuracy.
Be assertive and make sure good details are included
If you check out your credit report and see an account in good standing has not been
posted, get that changed quickly. Sometimes, an account that is in decent shape is omitted. Consider contacting the creditor and ask that information be added as it could help boost your entire credit score.Pay bills by the due date
Taking care of bills on time is among the most significant factors that can determine your credit score. In fact, being timely in paying bills can help boost your score. You may do well to even establish a system where your bills are paid automatically, reducing the risk of missing a payment and incurring late fees.