Tips to Help Improve Your Credit Score

By the time you check your credit score, you might be shocked when it turns out that it is not as high as you’ve anticipated. If this is your case, you need to find ways to improve your credit score to prevent all the underlying inconveniences of having one. If you want to know what you can do to somehow improve it, keep on reading the items listed below for more details: 

Diversify your accounts 

Your credit mix—credit cards, student loans, auto loans, and mortgage—counts for 10 percent of your credit score. Adding another feature to your mix now will help your score as long as you make payments on time.  

Pay down “maxed out” cards beforehand 

Once you’re using several credit cards and the amount owed on one or more is almost reaching the credit limit, you need to make sure to pay that off beforehand to reduce your credit utilization rate.  

Be cautious as you pay off old debts 

When a debt is “charged off” by the creditor, it only indicates that they won’t be expecting further payments. When you make a payment even an account is charged off, it will lower your credit score as it reactivates the debt. Usually, this happens if collection agencies are involved.  

Never close your unused credit card accounts 

Remember that your credit history’s age is important, which means that the longer your history is, the better. If you want to close credit accounts, you can close the new ones. 

Apply for new credit cautiously 

Though it raises your overall credit limit, it damages your score when you open or apply for many new accounts within a short period of time.  

Contact your creditors 

If you cannot afford your monthly bills or you missed your payment deadlines, then you should contact your creditors right away to establish a payment plan. Addressing your issue as early as possible can ease the bad impacts of high outstanding balances and late payments.  

Pay more than 1 billing cycle 

If possible, you can pay down your bills every 2 weeks instead of paying them once every month. This is guaranteed to improve your score and lower your credit utilization.  

Set up payment reminders 

You can set up reminders online or take note of your payment deadlines for every bill in a calendar or planner. Make sure to always pay your bills on time since this can help increase your score within only a couple of months.  

Review your credit report 

You will be allowed to have 1 annual credit report for free from each of the 3 reporting agencies. Know that your credit score won’t be affected if you request one. Try to review your report thoroughly and dispute any errors that you see. This method is the nearest you can get to a rapid legal credit repair. Informing the credit reporting agency about outdated or wrong information will help your score improve when the incorrect info is removed.