We all dread it, we find out we have a bad credit score and it can be pretty daunting. Not getting loans, or having super high-interest rates can really be upsetting. Wanting to improve your credit score is normal people. Although it may not be a quick fix, how to improve your credit score can be done developing some good habits which overall would lead to a better credit score, these tactics can be used no matter where you are in your credit history journey. It is never to late to start building your credit!
When it comes to repairing your credit like we said it’s not a quick fix. Think about it like losing weight, it requires dedication and hard work. Similarly repairing your credit and developing these good habits to ensure you on the right path to doing so, require some great discipline. When you’re interested in fixing your credit you may actually be proposed with some quick fix efforts that seemed too good to be true. And usually, it’ like everything else, if something’s too good to be true that’s likely the case. Attempting to use Quick Fix methods to repair your credit score can actually backfire against you and put you in a worse position than you already were before. So the key advice given to a lot of people looking to repair their credit is maintaining discipline and managing it responsibly over time.
Your credit score consists of five different factors that come together to give you that three digit number. So it is essential that you keep these in mind when you’re looking to repair your credit .
Now that we understand the five factors they come together that makes your credit score. You may ask yourself what are the next steps on how to improve your credit score? Let’s take a look at some disciplinary tactics you can do right now to help improve your credit score.
Payment Reminders. Making any payment towards your credit is essential. Quite frankly it actually weighs the most towards your credit score, accounting for about 35%. So depending on the bank or your lender, or even the services you pay for on a monthly basis, setting up payment reminder is a great way to keep on top. If you do a lot of mobile banking most banks give you the option where you can set up payment reminders so you’re always ahead of the Curve. This usually comes in the form of an email or even a text message. And if you don’t like the idea of payment reminders and you feel that you may not be as responsible as you should be a great alternative to that is automatic payments. You can always have the bank or your lender set up automatic payments each month so you don’t have to worry about making on-time payments towards your credit, it’ll just be done automatically. One thing you need to keep in mind with automatic payments, most of the time it only make the minimum payment. And since the minimum payment is only being made your credit amount owing can become extremely high without you knowing. So make sure you install the disciplinary action of money management so that way you can be on top of your finances and avoid late payments.
Reduce what you owe. You may ask yourself how exactly this helps you improve your credit score. In most cases, it doesn’t. The reducing the amount of credit that you owe to your lenders can help you manage your money properly so that way you can pay off any debts or any outstanding balances that are negatively affecting your credit report. Once you have this done and set up a foolproof strategy where you won’t fall behind on any payments, you can then tackle your credit repair. If you’re looking for a trusted credit repair service definitely call us now and we can help you out.
Don’t Close Unused Credit Accounts. One thing you should keep in mind is if you have many types of credit such as credit cards. If you have some credit cards that are open and they aren’t causing you any money monthly it’s a smart strategy to keep them. The reason for this is that your credit utilization ratio will be much higher and since that accounts for about 30% of your credit score the more money you have for your credit utilization versus the amount of credit you’re using be quite beneficial to you. Although if you closed his account and lower your credit utilization, this can impact you negatively.
Don’t Open Multiple Credit Accounts at Once. I know we mentioned credit utilization is a great start. Although you have to be a little bit smarter about it, don’t open many credit Accounts at once. Pace yourself because most of the time getting a credit account means getting a hard credit check on your credit score. And if you open multiple credit account at once your credit score can take a significant head which ultimately would impact you negatively. This also goes without saying, with more unnecessary credit it should be tempting to overspend and have that you can’t pay back.
Be Patient. Like we said fixing your credit is not an easy process, it’s not something that will happen overnight it takes quite a bit of time. So the best advice we can give you is to be patient and set up a proper strategy so you can build your credit over time. Don’t be disheartened if it takes a few years for you to build your credit to be at a point where you become a prime Borrower.
If you’re looking for some credit repair services on how you can improve your credit score definitely give us a call and we can help you out. Call: 1-888-8888