Top 6 Ways to Improve Your Credit Score

December 6th, 2013 by Alex Bach

Written by Alex Bach

Bad credit can effect so many aspects of your life: your interest on future loans, cars, mortgages; your employment opportunities; and more.  And the impact from a low credit score can take a while before returning you to solid numbers. Don’t let your credit score get away from you. Not to worry, Credit Report Problems have some easy ways to improve your credit and keep you financially secure.

If you’ve got questions about your particular score or other avenues of your credit, don’t hesitate to contact us.  We’re here to help!

Here are…

6 Ways to Improve Your Credit Score:

1. Check Your Score–You can’t very well go about fixing your score if you have no idea what it is.  Grab a free credit report and look at what aspects of your credit that need the most attention.  You might find that making late payments on one or more of your accounts has damaged your credit score, or you may find out about a loan you didn’t even know existed–which could also mean your account and identity are in jeopardy.  This is a crucial step for your credit score and safety.

2. Pay Your Bills On Time–This may sound like a no-brainer but its usually one of the biggest contributing factors to a low credit score.  Paying your bills steadily will help increase your credit rating while also minimizing fees, which can soon spiral out of control and greatly diminish your score.

3. Set Up Reminders–There are myriad methods and apps out there to help you manage your various account payments. Apps like Mint and Credit Karma can help you set up payment reminders and allow you to track your financial statements, account balances, and financial progress on the go.

4. Keep a Low Profile–And by profile we mean a low credit card balance.  Your credit score will actually raise based on your credit limit and the amount of credit available.  By paying off your cards and keeping your balance low, thereby making more credit available, your score will increase.

5. Minimize Your Debt–Obviously this is the ultimate financial goal, and it’s likely one that will take some time. What we mean here is to minimize any debt you can.  Close up the small debts on your credit cards so you only have one that you can routinely pay off.  Next, consolidate your larger loans if possible, such as your student loans.

6. Use a Small Window–Every time your credit score is checked it decreases a little.  This can hurt when taking out a mortgage, lease or student loan, which is why FICO has recently allowed a 30 day window where the score won’t be hurt when checked.  This means if you have to take on a large financial obligation, try and do so in that 30 day time-frame.

Managing your credit might seam like a daunting task, but these 6 tips will help lessen the burden and get you on the way to better credit.

 

Pay Your Bills On Time


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