Having a high credit score is very important in your financial life. The higher your credit score, the better your chances are of qualifying for credit cards or loans with good interest rates. Depending on your credit score, it can either save you a lot of money or cost you a lot of money. However, quite a number of people have poor credit scores because of a missed payment, credit history errors, or others. If you are one of the people with a low credit score, you are not alone. You must note that improving your credit score takes time, as there’s no instant way to fix a credit score. Quick-fix methods almost always backfire, so it is important that you don’t rush to get one. We will be discussing the different ways you can improve your credit score in this article, so let’s get right to it.
Pay your bills on time
One of the best ways to improve your credit score is by paying your bills on time. Reducing your credit card balance and keeping the debt below 30% is the standard advice. When you pay less or later than you need to, your credit scores will be affected negatively. There are other bills that are just as important, and you need to pay them on time as well. These bills include student loans or loans of any kind, phone bill, utilities, rent, and others. If you find out that you are behind on any of your payments, it is crucial that you bring them current fast. However, there are some payments that can cause serious havoc to your credit score – one of which is a mortgage payment.
Dispute any errors found on your credit report
It is essential that you review your credit report at least annually. This is to ascertain whether there are any errors in the report. If you find any errors, you can dispute it by reaching out to your lender or the credit reporting agency. Odds are the missing information may be affecting your credit score adversely.
Reduce the debt you owe
You can reduce the debt you owe by keeping your credit card balance low as any high unpaid debt will affect your credit score negatively. Also, rather than moving your debt around, it is advisable to pay it off as it will help your credit score improve. Reducing the debt you owe requires a lot of financial discipline as it isn’t an instant fix.
Closing unused credit cards is a bad idea
As long as your unused credit cards are not costing you any money, it is smart to keep them open because your credit utilization ratio may increase if you close them. Your credit score will suffer if you have less open accounts while owing the same amount of money.
There are a lot of other tips you can utilize, one of which is to avoid applying for a lot of new credit as it will negatively affect your credit score. You may be in credit card debt trouble right now. If you are buried in credit card debt and cannot find your way out, you need help. Dsouza and Strachan Legal Group has the knowledge and experience you need to get the creditors off your back. Contact Dsouza and Strachan today for a free consultation.