We think that improving our score is such a hassle. However, this kind thinking is wrong. You should know that the consequences of having bad credit would give more stress, headaches and hassle for you. Therefore, what will you choose, increasing your credit score or facing the consequences of bad credit score?
Enhancing your credit score takes time. You should also put effort in it. Being persistent also helps. The question is how can you improve your credit score? You can try to follow these simple steps to give your credit score a big boost.
* The surest way to improve credit score is by paying bills on time. Delinquent paying of debts and collections is the main cause of a drop in credit score. Therefore, you must make it a habit to pay bills on time.
* You must take corrective actions as soon as possible especially in the inaccurate items in your credit report. You can dispute those items that you think erroneous by contacting your creditor and showing proof that you already paid for it. You are exercising your right as you dispute items.
* Even if you pay your collection, it may be still in your report, but you should make sure that there is a mark saying that it is paid. It is also better if your creditor deletes item if you make payments for it.
* It would be better to ask for professional advice. He/she will help you set up a game plan to follow in repairing your credit score.
* Do you spend too much using your credit card? It is time to stop spending more than you actually can afford. Do this by not spending 30% of your credit card limit.
* If you have debts, you should pay them off. Revolving credit is very risky and can harm your credit score. It is cheaper to pay your all your debts to improve your credit score than revolving them around.
* Having too many credit accounts will affect your score. Get only credit card accounts that you really need.
* If you want to close unused credit card accounts, do not do it fast. Think twice and do it slowly. For example, close one credit card account in every two or more months. This technique is also applicable in opening new credit card accounts. Easy to say, keep your accounts to a minimum of five and close or open new accounts slowly. In addition, every newly open and close account will stay in your credit report so think twice when opening and closing accounts.
* Are you meticulous when it comes to shopping for clothes and foods? You should do the same in finding the best loans for you. You should shop around for loans that have lower interest rates at that credit score of yours.
* Always remember that having many credits is good, but you pay them on time, every time.
How can you improve your credit score? It is very straightforward and simple.