If your credit score
is not so great, it can seem like a daunting task to bring it up to par. If you
have plans to get a mortgage or a car loan in the near future however, this is
most likely something you will have to go through. It’s not an instant process,
but here are some things you can do to improve your credit score.
Pay your bills on time
This is first on the list for a reason, just as there is no better way to ruin your credit than by missing payments, there is also no better way to improve it than to make sure all your bill payments are made on time. If you hope to ever improve your score, this is the most basic step and it cannot be skipped.
Use credit often
Try to use credit as often as you can, and of course as per
the first tip, make sure you repay it on time. Even if you have the money
available, if you are consciously trying to improve your credit, put it on plastic
and pay it all off at the end of the month. It won`t cost you any more interest
this way and, as long as you are diligent on the repayment, this will go a long
way towards bringing up that credit score.
If you have bad or little to no history, it can be difficult to get approved for a standard credit card. This is where secured cards come in. For a nominal fee, paid in advance, you can obtain a secured card which you can use to improve your credit and eventually obtain a regular card.
Increase credit limits
If you are using your loans and meeting your creditors minimum requirements, they will surely offer you to increase your rate. This actually scares some people off as they fear they will spend too much however the key here is, once again, diligence. The best thing you can do when offered to increase your credit limit is to accept and to always keep your balance as low as possible. This will show creditors that you have more unused balance and will help improve your score.
Check for errors
When trying to improve your credit, it’s always a good idea to have a look at it. You can obtain a report from Equifax or Transunion either by mail or online. This will give you a better insight about where you are at and what you need to do to improve. When doing so, always make sure to check for any errors such as incorrect payment history, debts that have already been paid or debts that actually belong to someone else.