So, you have reviewed your credit score and you don’t like what you see. Before you get too upset, remember this: there are steps you can take to improve your score in the months and years to come.
Below are five of the best ways to improve your credit score:
1. Make On Time Payments in the Future
For some, this is easier said than done. However, it’s a step you need to take. It’s essential that you make all credit payments on time.
One of the best ways to protect against late payments is to setup payment reminders. This will ensure that a bill doesn’t slip through the cracks, thus causing you more trouble in the future.
2. Reduce Your Debt
It may be easier said than done, but it can be accomplished with the right approach. Over time, slowly but surely, you can begin to eliminate your debt.
Tip: it is difficult to reduce your debt if you are always adding more to the pile. For this reason, put your credit cards away and focus on the task at hand.
3. Keep Balances Low on Credit Cards
It doesn’t matter if it’s a credit card or another type of revolving account, high outstanding debt can have a negative impact on your credit score.
This goes along with point #2 above. You may have a lot of credit card debt today, but that doesn’t mean this has to be the case in the future.
4. Don’t Open New Credit Cards
Many people think this is the best thing they can do, as it increases their available credit. While this sounds like a reasonable strategy, it can actually work against you in the long run. And if it does, your credit score will actually take a hit.
5. Review Your Credit Report
Imagine this: your credit score is being dragged down by an error on your credit report. As frustrating as this may be, it’s not something you can’t take care of.
If you find an error on your credit report, don’t wait to contact the appropriate creditor and credit bureau. Once this is cleared up, you may see your score begin to climb.
There are many ways to improve your credit score, but these five strategies are among the easiest to employ. Would you add any others to the list?