People who have poor credit can suffer in many different ways. Credit scores influence the way you bank, the way you save, what monetary offers are available to you, and direct how you are able to shape your future. Your credit score is essentially your report recommending or condemn you to all sorts of institutions that determine your future success. Needless to say, your credit score is very important and should be treated with care. Some of us have inadvertently been hasty about our financial habits and wish to change and others among us simply haven’t had time to bolster our credit. If either one of these situations applies to you, we have some quick fixes for credit that you can benefit from.
Know What Your Credit Score Is
The first step to improving your score is to know where you currently stand. Check out your credit score using one of the many credit score checking services available (We recommend annualcreditreport.com. You can check your credit score there once a year without charge.) and then set a goal for a score that you’d like to work towards.
Paying Bills on Time
It may sound elementary, but many people think they can get away with not paying their bills on time and still have a decent credit score. While we will show you even more ways to improve your credit score, let it be noted that playing bills on time is the number one thing you can do to improve your score.
Use a Credit Card. Intelligently.
While you don’t necessarily need a credit card to have a good credit score, if you use a credit card intelligently, they can be a great mechanism for boosting a score. Show that you are worthy of that piece of plastic by not getting into debt and making payments on time without maxing your credit card out. In fact, going beyond not maxing your card out, avoid using your credit card too heavily. The rule of thumb here is to keep your expenditures at only 8-30% of your card’s limit. Spending enough to show that you have a pulse but not so much that you’re termed volatile is a sure way to demonstrate your financial prowess.
Make a Request
Let’s say that normally you pay off all of your bills on time, but you don’t have a perfectly spotless record. Don’t fret. Some lenders will agree to erase a few late payments from your record. To do this, you’ll have to make a request, in writing, and put forth your best negotiation skills. It may not be exactly common, but it’s not unheard of either.
Avoid Closing Accounts
If you have an account that you don’t use often and are thinking about closing. Think again. Closing accounts is not good for your credit score. It is usually better to simply use the account on occasion than abandon it completely. Dust off an old card and designate it for a particular purpose to ensure it gets sufficient use.