3 Steps to Improve Your Credit Score

by James Hendrickson on April 20, 2017 · 3 comments

Steps to Improve Your Credit Score
If you’ve ever had credit trouble you know that there is no overnight fix to bad credit. There are, however, a number of steps you can take to insure you improve you credit over time.

Steps to Improve Your Credit

Of course everyone would love to have a perfect credit score but sometimes finances can get the best of us. Maybe you lost your job and were forced to miss payments or maybe you made a purchase you couldn’t really afford. Whatever the case may be, here are three steps to improve your credit:

  1. Pay Bills On Time – On-time payments are extremely important to credit agencies. If you pay your bills on time consecutively for six months you will see an improvement on your credit score.
  2. Pay Off Debt – In addition to paying your bills on time paying off your current debt is extremely important. If you have debt you should try to pay it off as quickly as possible (in full when you can).
  3. Keep Balances Low – If you’re paying your bills on time and paying off your debt you should also be able to keep the balances on your account low. This will also help your credit score greatly.

As previously stated, fixing your credit score overnight won’t happen but there are great sites out there for bad credit help as well as other tips on how to improve your credit score.

Other Tips on Improving Your Credit Score

Following the above three steps is a great start if you’re trying to improve your credit score but there are other things you can do as well. Most of these tips can help improve your credit score without you needing to do anything.

  • Only apply for a new credit account when necessary. Making too many inquiries on your credit can lead to a bad credit score. So, if you’re trying to improve your credit score you should try to refrain from applying for new credit.
  • Leave unused credit accounts open if you can. Some people don’t have the self-discipline for this but if you can leave unused credit accounts open you will increase your credit score. Part of your score is based on the amount of credit you have available.
  • Check your credit report often and dispute anything you see that doesn’t seem right. Oftentimes we pay things off or (in extreme cases) your identity may have been stolen. You should be sure to stay on top of your credit score.

How to Rebuild Your Credit

You now have some of the tips necessary to improving your credit score but how do you rebuild credit?

The best answer to that question is to give it time. Many delinquencies and other marks on your credit report will take time to fall off. Most delinquencies remain for seven years, bankruptcies for 10 and inquiries remain on your report for two years. You will have to wait for many of these things to be taken off your report before it is improved but once they do your finances will thank you!

Have you significantly improved your credit score? We’d love to hear your story. 

Photo: CafeCredit.com

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{ 3 comments… read them below or add one }

1 Money Beagle April 21, 2017 at 9:29 am

The last paragraph is important, probably more so than any other part of the post. You have to be patient. For most people, getting into credit trouble happens over time, not overnight, so it makes sense that getting things straightened out will also take time.

2 Mrs. Picky Pincher April 21, 2017 at 9:55 am

It’s funny because people think there are magical ways to improve your credit quickly, but it honestly takes some time. I paid off a boatload of debt (it’s somewhere in the $40k paid off range now) and my credit score has improved. I’ve also improved my score by asking for credit limit increases (sparingly) to improve my credit utilization ratio.

3 Empower May 3, 2017 at 11:51 pm

This is so timely for me. I am trying so much to improve my credit score for house loan financing.

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