Having a less than ideal credit score is way more common than you may think. A lot of people have credit issues for all sorts of reasons, but bad or bruised credit doesn’t have to be permanent. With a little effort and discipline, you can start improving your credit score before you know it.
Here are a few important tips on how to fix your credit score:
Credit cards are one way people get into credit problems. If you have one or more credit cards, it’s important to pay off as much of the balance as possible; be sure to make more than the minimum payment each month. The closer one or more of your credit cards is to its limit, the more it can affect your credit rating in a negative way.
“If you’ve used over 50% of your credit card limit, made late payments, didn’t pay at least the minimum balance on your debts, or maxed out your credit, these seemingly inconsequential acts can have an adverse effect on your credit score.”
- Credit Counselling Society
Making payments on time is incredibly important. Even if you’re only a couple of days late, after a while your late payments will begin having a negative impact on your credit score. Mark all your payment dates on a calendar, or set your phone to notify you the day before payments are due.
You may not realize it, but there could be old bills and debts that are dragging down your credit score. Unpaid cell phone bills, cable bills etc. are often sent to a collection agency if they aren’t paid. While the bills may old and inconsequential to you, they’re likely affecting your credit score in a negative way. You can get a copy of your credit report to find out what old debts are weighing down your credit rating. Both Equifax and TransUnion can supply you with a copy of your credit score.
Once you have a grasp on what debts you have to deal with, you can start looking forward. As long as you’re making payments on time and not taking on more debt, you’re well on your way to fixing your credit score. This doesn’t happen overnight though, so you’re going to have to be patient. Over time you can take other steps that will help raise your credit score.
Our finance team can help you get-back-on-track financially, so if you need professional advice, we’re always happy to help.