Credit Tips

Need More Credit Tips? Contact Us Here!

Tips On How To Improve Your Credit Score

If your credit score is lower than you'd like, know that you can raise your score with time. When it comes to credit, there is no quick solution. The best advice for rebuilding credit is to manage it responsibly over a period of time- here are some tips to help:

  • Obtain A Copy Of Your Credit Report- Credit score repair begins understanding your credit report, so review your credit report and check for any discrepancies. Your credit report includes all information used to calculate your score and it may contain errors such as incorrectly listed late payments or balances. If you do find any errors, quickly dispute them with the credit bureau and reporting agency.
  • Implement Payment Reminders- Making your payments on time is one of the most important factors that impacts your credit score. Check with your bank and/or credit card companies to see if you can set up payment reminders, such as email or text messages letting you know when your payment is due. Another option is automatic payment schedules, but each situation is different.
  • Reduce Your Debt- This may sound difficult, but once you start reducing the amount of debt you owe, your credit score will begin improving and you will feel that much closer to financial freedom. To reduce debt, STOP using your credit cards. It's much harder to reduce your debt when constantly adding to it. Make a list of all your credit accounts to see how much you owe on each one and what the interest rates are for each. Then, work out a payment plan to start paying off the credit cards with the highest interest rates first. Your payment history is an important component to your credit score as it is the record you've established by either paying or not paying your bills on time. Your credit reports will reflect your payment history on any credit account you've had in the past 7-10 years, so make sure to make payments on time.
  • Make On-Time Payments- Delinquent payments, even a few days late, and collections will have a negative impact on your credit score score.
  • Behind On Payments? Get Current And Stay Current- The longer and more frequently you pay your bills on time after missing a payment, the more your score will increase. The impact of past credit issues decreases over time and recent good payment patterns show up on your credit report.
  • Keep in mind, though, that paying off a collection account will not remove it from your credit report quickly. It can affect your credit score for up to 7-10 years.
  • Struggling To Make Payments? Contact your creditors or a credit counselor- This won't rebuild your credit right away, but if you can start and continue to pay your bills on time, your score will increase over time. Seeking assistance will not hurt your score either.