All of us agree that one’s credit score is very important. If you have a dream or owning a home someday, then it is most likely that you will take up a mortgage. For those interested in buying a car, then you are surely going to need to take up a car loan. Or maybe you want to get a credit card since most businesses are accepting them plus you will want to enjoy the flexibility and convenience that they offer. Even the simplest of them all like getting a phone or utilities will require that you have a good credit score. If you don’t, business will take you as being a high-risk customer.
So if you are the type that has a bad credit score, or let us say it is average, it is important that you improve it. Below we highlight some tips that will help you improve your credit score.
Ways to improve your credit score
Knowing your position
The first step towards improving your credit score is knowing where you are currently, and project where you want to be. When you establish that, then you will devise ways to get to where you want to be. One sure way to reach your destination is by using one of the many services that are available. Such services can pull up your credit score and the report without in any way, hurting your score negatively.
Clear or rectify any errors in your account
If there are numerous errors on your account, for instance, the inclusion of accounts that do not belong to you, accounts that make a reflection that you made late payments when the payments were indeed done in time and even debts that you have cleared but have not been reflected or reported to the credit agencies. Have all these errors corrected? If this takes a slow pace, you are advised to contact the concerned companies directly, who will, in turn, inform the credit agencies.
Ensure your credit cards are paid off
Pay all the debts that you could have incurred from the use of credit cards. These cards are very dangerous as they can consume your money more than you can generate. To ensure that you are on the right track of improving your credit score, you are advised to make a list of them, the balance that they have, their APR, and the credit limit that they have. After doing this, you can start paying them off as per your preference. When you pay down your credit cards over some time, you would have boosted your credit score substantially.
Do not close accounts
When you are done paying down your credit card, do not cancel that credit card as your credit score will take a hit. Instead, when you are done with your payment, you are advised to ask the credit company to make a report to the credit agencies on completion of the same. This will, in turn, lead to an improved score.
Make your payments in time
If you have been accustomed to making late payments in the past, it is the time that you start paying all the bills on time, while ensuring that you don’t miss a single payment. This will go along way in improving your credit score.