You might be confused as to how to better your credit score. Fortunately, it’s not that difficult to figure out how to build credit back up again. As long as you’re strategic about how to raise your credit score, you can start doing it within just a few months in most cases.
The key is learning how to build credit fast by taking the right steps. You can put your credit score into a much better position by analysing your credit report and coming up with a plan to improve it within a few months.
Here are my top tips for improving your credit score and maintaining it over time without driving yourself crazy in the process. I’ve had clients’ with credulity scores in the low hundreds when they came, only to improve their scores to obtain top credit cards with much lower rates of interest and get finance for new car purchases.
Start By Obtaining A Copy Of Your Credit Report
When is the last time you had a copy of your credit report and took a good, long look at it? Most of my clients admit they don’t monitor their credit reports on a regular basis- whether it’s because they don’t know how or where to check it, or they simply don’t put the time in to actively monitor it. So before continuing with this blog, head over to either Clear ScoreExperian, sign up for FREE, and get your credit score now.
But when you’re trying to figure out how to improve your credit score, it’s important for you to know where you are now with your credit score. There is a good chance that there are errors that are dragging down your credit score. You will need to report these errors so that they are corrected and your score starts moving in the right direction.
If nothing else, you will be able to take note of the things that might be bringing your credit score down.
Catch Up On Your Late Payments
Making late payments to your credit card companies and other loan payments is the worst thing you can do with regard to your credit score. You’re going to watch your credit score sink to new lows if you get into the habit of making late payments all the time.
If you’ve fallen behind on any of your debt payments, it’s imperative for you to catch up on them ASAP. It’s also essential for you to stay current on them once you’re all caught up. Doing this over a few months will see your credit score begin to climb back up.
Pay Down As Much Of Your Debt As You Can Quickly
Do you have a ton of debt hanging over your head at the moment? If your goal is to learn how to increase a credit score, paying down debt is going to be one of the things that’ll need to be on your radar.
When the credit bureaus see that you have accumulated a lot of debt, they’ll knock your credit score down. And they’ll continue to knock it down more and more as you rack up additional debt over the years.
Think about using whatever you have in your savings account or even a debt consolidation loan to pay down a large portion of your debt. By bringing your debt utilisation down, you can work wonders for your credit score.
Keep Any Old Accounts You Have Open and Use Them To Your Advantage
After you’ve paid down a lot of your debt, you might be tempted to close the old accounts that were connected to it. DON’T! You shouldn’t do that!
Rather than requesting that your old accounts be closed, keep them open and don’t touch them. Doing this will make it appear as though you have a lot of credit that you’re not using. This will bring your credit utilisation down and increase your credit score since you’ll look like a very responsible borrower.
Avoid Applying For New Forms Of Credit At All Costs
You might not think twice about applying for a new credit card, a new car loan, or even a new mortgage for a house you want to buy. But you should know that doing these things can and will affect your credit score in at least a small way.
Every single time a lender makes what’s called a “hard” search on your credit, it’ll impact your credit score. The more lenders look at your credit report, the more your score will go down. And you’ll need to wait one or two years, in most cases, for these inquires to fall off your credit report so that your credit score can rebound.
Keep Tabs On Your Credit Report
Once you’ve learned how to better your credit score and take the right steps to do it, it’s important to pay close attention to your credit report anymore.
Even though your credit score will be repaired, you should still make it a point to keep tabs on your credit report as often as you can. It’ll help you steer clear of finding yourself right back in the same position you were in before. It’ll also reduce your chances of being the victim of identity theft since you’ll be able to spot any suspicious activity on your credit report.
Knowing How To Better Your Credit Will Improve Your Financial Future
Your credit score might be low right now. But that doesn’t mean that it has to stay down in the dumps forever! We have very little education about money growing up, most of us don’t know how to handle it.
But with better education, we can change that relationship so that money servers us and not the other way way around. The rich know how to make money work for them. The rest of us need to learn those secrets for our well-being. Starting by having a good credit score is the basis of being financially free.
You can change your financial future, for the better, by working to improve your credit score. It will also mean you have more mowing in your pocket at the end of each month. You will also be able to borrow more money at cheaper rates of interest. Starting with checking out your credit report and following the tips above will see your credit score skyrocket.
Need more tips and guidance with sorting out your money woes? Get in touch and let’s work together to make your money work for you.
For more information, head over to www.kamjohal.com.
