Having a bad credit score can be detrimental to your financing and places a number of hurdles in front of you when it comes to availing loans. Having a poor credit score can happen to anyone for a number of reasons ranging from not paying debts off to missing payments on bills. Luckily, there are ways that you can go about improving your credit score.
1. Pay on time
This is by far the most obvious way to improve your score, yet is still worth mentioning. It doesn’t matter if you’re only a few weeks late or a few months late, paying your bills late will result in a lower credit score.
2. Pay down debts
This is tricky because you want to have debts paid off almost to its entirety, but not completely. Your score is a reflection of how well you manage your credit, but if you pay off your debt completely you have no credit. The best way to approach this is to pay off most of your debt, but leave a little extra to manage.
3. Assortment of credit cards
Similar to paying off your debt is showing that you can manage different types of credit cards. This is not to say that you should have 10 different credit cards, but having a few different kinds will improve your score. Having a Visa, MasterCard, Sears and/or gas card will show that you can manage short-term and long-term credit cards.
4. No new credit
Unless it is completely necessary, it is vital that you stay away from getting any kind of new credit. Every time you get new credit an inquiry is added to your report, which drops your credit score to some degree.
5. Don’t file for bankruptcy or foreclosure
Filing for either of these can kill your credit score because of the fact that they stay on your credit report for 10 years. Not only that, but they also decrease your credit score over time. The good news is the closer you get to the end of your 10 years, the less of an impact it has on your credit score.
6. Delete errors in 48 hours
This is the quickest and most efficient method to correcting any errors from your credit report and raising your credit score. There is a lot of paperwork that is required to do this, but it will save you the hassle of having to deal with much more later on.
No matter how you opt to improve your score, it is vital that you get a jump on it as soon as possible. Having a poor score can kill your financial status and will make it extremely difficult to acquire any kinds of loans down the road.