Looking to Improve Your Credit Score? These 5 Proven Methods Reveal How

Are you facing a credit score that makes you wince at the sight of it? You are not the only one. Since the monumental economic drama of 2008, there are thousands who have dealt with losing work, houses and began missing payments.

As the number of people looking for ways to better their credit scores increased, there began to be many scammers looking to capitalize on this new ‘opportunity’. Credit card scammers began popping up everywhere with promises to repair scores. However, instead of falling prey to false promises, why not use proven methods to improve your credit score?

1.   Begin with the Big Debts

If you want to turn your credit score around, then begin paying off your big debts. Generally, credit scores’ are based on revolving credit; the amount on your credit line versus how much you owe on your credit card. Try to get a balance to drop lower than 30%. From there, try to keep your utilization rate at less than 10% if you want to attain and maintain a high credit score.

2.   Pay Credit Card Payments on Time

Keep track of what you are spending and ensure that you will be able to pay whatever is owed, before the deadline. And, once a pattern is recorded for on-time payments, you will see your credit score start to rise. If you need a reminder for your payments, then set up auto payments where you can.

3.   Put in More than the Bare Minimum

Instead of simply opting to pay the monthly bare minimum, choose to pay more than the minimum. Even if it is just $10 extra, it pays off in the long term. The extra payments will accumulate and as they rise, your minimum payment will drop down. This is a faster method to lower your debt and increase your credit score.

4.   Identify Errors in the Credit Report

Make it a habit to regularly check your credit report for errors such as credit card theft or identity theft. If one of the agencies contain one small error, it could spell disaster for your credit score. If you are vigilant, you can catch erroneous information before it ruins your credit score.

5.   Keep Old (paid off) Accounts Active and Use Small Loans to Build Credit

If you have a paid off some debt, you may be tempted to close off the account. However, if you maintain the paid off the account, it can reflect well on your credit report.

What’s more, is if you have a steady account that you do not owe money on, it may be a good idea to use it for small loans to build credit. By taking out a small loan that you can easily maintain, you will be able to increase your credit score and this will reflect on the report.

Make sure to check your credit report for any errors, and always be careful with services asking for repair your credit score. Simply follow these five tips on you will be well on your way to fixing your credit score.

 

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