7 Ways to Improve Your Credit Score
Having a good credit score is absolutely essential for a wide variety of reasons. It allows you to make major purchases, including a home or car. In addition, a good credit score can also ensure your future in other ways, such as improving your chances of getting a job. You can also qualify for credit cards and for taking out loans when you have good a credit reputation and score. Of course, if you find yourself in a situation where your credit is less than perfect, there are measures you can take toward improving it. These are tried and true methods to consider.
Make Payments on Time
• The first thing you should do to improve your credit score is to make all of your payments in a timely fashion. This will show your creditors that you are serious about paying off your debts on time. As a result, your credit score will gradually begin to improve over time. Making timely payments is also the best way to improve your score.
Review Credit Reports
• Carefully review your annual credit report. You can get one for free each year from one of the major credit reporting agencies: TransUnion, Experian and Equifax. Check the entire report and keep an eye out for any mistakes that might be present on it. It is also a good idea to do this in the event you have fallen victim to credit card fraud. Make sure all of the information on the report is accurate and up to date.
Use Credit Wisely
• Use your credit card responsibly. This means that you should never overspend when you know you cannot afford something. In addition, you might want to consider using only a single credit card, at least until you have successfully made repairs to your credit and improved your score. Always be aware of your credit line and never go over it.
Make Larger Payments
• Make payments toward your credit card charges that are larger than the minimum. This is a great way to quickly improve your credit score. Creditors will see that you are serious about your finances, and your score will improve as a result.
Extend Credit Limit
• If you are financially able to do so, consider extending your credit limit. It is similar to getting a new credit card but will generally lower the percentage of credit you have been using thus far. If your credit history is good, you are much more likely to be able to do this and can improve your credit score in the process. Make sure to choose the card with which you have had the best and longest history.
Use Your Card
• Actually using your credit card will help boost your credit score. If you have a card but very rarely use it, this will negatively effect your score. As long as you use it responsibly and pay your bills each month on time, you will find this to be an easy way to improve our credit score.
Be Smart with New Accounts
• Be careful any time you open a new credit account. Generally speaking, it can adversely impact your credit score if you open a new card but take forever to use it. On the flip side, if you open a new account, don’t take a long time to actually use it. If you don’t plan on using a credit card, do not apply for one.
By following the above steps, you will be on your way toward a better credit score.