When your credit score has taken a dive, no need to fret, as there are various ways you can get that score back up to good and excellent. We understand your desire to improve your credit score, so here are the top 6 ways you can do so beginning today.
1. Get rid of small balances
If you’ve got a few credit cards with low balances, pay them off ASAP. Even though the amount you owe may be small, the amount of cards you have that have remaining balances affects your credit score. So get busy paying off those small balances and just use one or two credit cards at the most for your purchases.
2. Always pay on time
Consistency is key when it comes to paying your bills and improving your credit score. If you’ve got to mark your calendar or download an app that reminds you to pay your bills, do it. Being late on payments over and over will certainly affect your credit score, so be diligent and always pay before the due date.
3. Go over your credit report and dispute any errors
Get a copy of your credit report and go over it carefully. If you find an error, make the appropriate calls and politely dispute the error. You may also negotiate with the credit card company. Let’s say you were late on payments for a short period last year due to being laid off. Ask them if they would be willing to remove this from the credit report because you’ve been such a good customer before that brief period. It doesn’t hurt to ask!
4. Get a credit card
If you don’t currently have a credit card and your credit score could use some improvement, go ahead and get one and use it responsibly. Charge small amounts here and there and pay them off as soon as the bill comes in. This will help show how responsible you are with your credit card and help improve your credit score. If you’re worried you won’t be approved due to poor credit, here are a list of cards help get you back on track.
5. Only use credit cards when absolutely necessary
Determine to only use your credit cards if you absolutely have to. Don’t purchase things that you don’t need, avoid impulse shopping, and keep yourself accountable. Credit cards are nice to have around for emergencies or convenience, but keep in mind that they can also be quite tempting to overspend. Keep yourself in check!
6. Be patient
It takes time to improve your credit score. Be patient and be careful how much you charge on your credit cards. It can take a year or a couple of years to really get your credit score to where you want it. In the meantime, educate yourself on finances and be responsible with your money.
You can improve your credit score by heeding these tips. If you have questions or feel you need financial advice, feel free to see a financial advisor or debt counselor. You can take charge of your financial life and create the kind of financial life that you desire.
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