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Top 5 Tips to improve your credit score
So you have had some debt problems in the past and your credit score was in the tank but now you’re back on the right track, here are some tips to help you build your credit score back up to its former glory.
1. Credit Monitoring
Knowing what is on your credit report is a big deal. Up to 70% of all credit reports have errors. Look at yours. If you have errors contact the credit bureau and get them fixed (easier said than done). Then continue to monitor your reports to make sure there are no new unwarranted derogatory comments.
2. Pay more than minimums
Thank goodness the recent legislation regarding credit cards now states that credit card companies have to show on the 1st page of your bill how long and much you will pay if you only make your minimum payments. It’s incredible how much time it can take you to pay off that latte you got back in 1992…. Still paying. Paying more than the monthly minimum on your credit cards helps to pay off the debts faster but it also improves your credit score by showing the bureaus your ability to repay your loans.
3. Budget
Now that you are serious about getting your credit score up it’s time to really look at formulating a budget that will help you maintain your greatness. Figure out how long it will take you to pay off your debts and how much it will cost. Based on your ability to pay more or less on a monthly basis will dictate when and how much you will pay to get out of debt. By figuring this out you will have a goal of becoming debt free which will help you maintain your greatness and improve your credit score.
4. Get Current
If you are behind on any of your payments get caught up ASAP. The sooner you don’t have any late payments on your credit report the faster you will be on your way to a better credit score.
It will also save you a bunch of money in late fees etc.
5. Check your credit score
Your credit score is what dictates what rates you will be able to borrow at so knowing your score is very important. This will give you a gauge of where you are and your improvement as time goes by.
