11 Words that Can Change Your Credit Score

Your credit score is a three-digit number that lenders use to assess your creditworthiness. Moreover, it is based on your payment history, amounts owed, length of credit history, credit mix, and new credit. A good credit score can help you qualify for loans and credit cards at lower interest rates, which can save you money over time.

So, let’s check out the 11 words that can change your credit score.

11 Words Meant for Changing Credit Score

The 11 words that can change your credit score are:

“Pay your bills. Clear debts. Maintain a good credit utilisation ratio.”

This may seem like a simple rule, but it is the most important thing you can do to improve your credit score. When you make your payments on time and in full, it shows lenders that you are a reliable borrower.

Tips for Improving Your Credit Score

Here are some important tips for improving your credit score:

• Keep your credit utilization ratio low. This means keeping your credit card balances below 30% of your available credit limits.
• You need to avoid opening too many new credit accounts within a short period of time.
• Keep your credit accounts open for as long as possible and the basic reason is that the longer your credit history, the better.
• You must have a mix of different types of credit, such as credit cards, installment loans, and a mortgage.

If you have any negative marks on your credit report, such as late payments or collections, you can dispute them with the credit reporting bureaus. If the errors are verified, they will be removed from your report.

How to Use This 11-Word Phrase to Stop Debt Collectors?

If you are being harassed by debt collectors, you can use the following 11-word phrase to stop them:

“Please cease and desist all calls and contact with me, immediately.”

This phrase is protected under the Fair Debt Collection Practices Act (FDCPA). When you send a cease and desist letter to a debt collector, they must stop contacting you.

To use this phrase effectively, you should:

• Send the letter by certified mail, return receipt requested. This will give you proof that the debt collector received the letter.
• Keep a copy of the letter for your records.
• If the debt collector continues to contact you after you have sent them a cease and desist letter, you can report them to the Consumer Financial Protection Bureau (CFPB).

Other Factors that Affect Your Credit Score

In addition to payment history, the following factors also affect your credit score:

• Amounts owed: The more money you owe, the lower your credit score will be.
• Length of credit history: You must know that the longer your credit history, the better.
• Credit mix: You must have a mix of different types of credit, such as credit cards, installment loans, and a mortgage, and this can help improve your credit score.
• New credit: Opening too many new credit accounts within a short period of time can drastically reduce your credit score.

In Conclusion

Following the 11-word phrase “Pay your bills on time, every time” is the best way to improve your credit score. By doing so, you will show lenders that you are a reliable borrower and increase your chances of qualifying for loans and credit cards at lower interest rates.