For such a simple number, your credit score can have a large impact on your life. It can determine whether or not you can purchase a car, rent an apartment, buy a home, get a credit card or even get a job. Unfortunately, many of us do not consider our credit scores until we need them, and by then it is a little too late to do anything about them. Instead, it is better to routinely check in on your credit score, and if you find that it is lower than you would like, begin to take steps to change it. To do this, here are 5 things that you can try.
Reduce Your Debt
One of the first things that you should look at is your overall debt. If you owe a lot of money, it will have a negative impact on your credit score. Things like credit card debt, a mortgage, student loans, or unpaid medical expenses can all have an impact on your score. If you find that you are dealing with a lot of debt, you should start taking steps to reduce it. It is almost impossible to completely wipe out your debt over night unless you win the lottery, so you will need to plan ahead. By making debt reduction a priority, you can slowly lower your debt, and increase your credit score over time.
Make Payments On Time
Missed payments are one of the biggest factors when it comes to a low credit score. Missing even a single payment can follow you around for a long time, making it essential that you pay for things on time. Cell phone bills, credit card bills, insurance, and loan payments are just some of the things that you need to pay on time. If you have trouble making your payments on time, there are tools that will help you budget your money so that you can more easily afford them. The longer you can go without missing payments, the better your score will be.
Credit Account Variety
If the only thing in your credit history is a couple of credit cards, you will likely find that your score is not very high. Credit reporting agencies like to see that you can manage different kinds of credit, so it would be a good idea to diversify a bit. Get your own mobile phone contract, or get a car insurance plan under your name. The more bills that are tied to your account – and the better you are at keeping up with the payments – the more your credit score will improve.
The fourth thing you can do to improve your credit score is simply be patient. More than likely you will not improve your score overnight, and will have to wait a while in order to notice an increase. The best thing you can do is be patient, and keep up good credit habits for a long period of time. If you can do this, you will eventually start to see an improve credit score.
Get Expert Advice
Lastly, if none of the above methods are working for you, you may need to talk to a professional. There may be something that is impacting your particular credit score that you may not have noticed. BY talking to an expert, you can come up with a detailed plan to improve your credit score, and ensure you are going about it the right way.