There are some surprisingly simple ways that you can begin improving your credit score right away, and it’s very important that you know what they are. The more time you take to look into these methods, the better your chances will be of improving your credit score in a big way. The better your credit score is, the more doors you will open for yourself in life.
1. Keep a close eye on your credit card balances
One of the best ways to go about improving your credit score and making sure it doesn’t get any worse is to keep a close eye on the balance of your credit cards. One of the biggest factors in determining your credit score is how much revolving credit you have as opposed to how much you are actually using. The smaller the percentage is, the better your credit rating will likely be. You want to shoot for 30% or lower. Even if you manage to pay your balances in full each month, you could still potentially have a higher utilization ratio than you might think.
2. Take care of all your credit card balances
Another thing that you will absolutely need to do when it comes to getting your credit score up is to take care of those pesky credit card balances. Start working on paying off any outstanding balances you have, because they are only going to prevent your credit score from going up in the future. One of the factors that determines what your credit score is like is how many credit card balances you have, and how much you still owe. The best thing you can do is to start taking care of these balances right away. In the end you will be very glad you decided to do this.
3. Leave Old Debt on your Report
While you may be tempted to fight to get negative items taken off your credit report after you have paid them off, this could actually be a bad idea. There is no doubt that negative items are bad for your credit, but most of them will go away within a period of seven years. There is also what is known as “good debt,” which is the debt you have handled well and paid off as agreed. The longer your history of good debt is, the better your score is going to be. Remember, leaving old debt and good account on your credit report as long as possible.
4. Make good use of your Calendar
If you happen to be looking for a home or auto loan, you should really do your rate shopping within a fairly short period of time. It’s also important to keep in mind that your credit score is negatively affected each time you apply for a line or credit, even if it is in a small way. The overall length of the shopping period will depend on the credit score that is being used.
5. Pay all of your Bills on time
If you really want to boost your credit score over time, the best thing that you can do is to simply pay off all your bills on time. This will reflect very positively on your credit report, so you will need to keep this in mind. When you are late paying your bills, it will reflect poorly on your credit report. Those who want to boost their overall score considerably will need to pay off their bills on time on a consistent basis. The better you are at doing this, the less you’ll have to struggle to maintain a healthy credit score.
6. Remember that sometimes Inaction is the Key
Sometimes it is what you don’t do that can actually improve your credit score. For instance, charging more than you normally do to your credit card can have a negative impact on your score as a whole. Remember that sudden changes in your credit behavior can lead to bad things in the near future.
7. Do not become Obsessed
It can be easy to get obsessed about your credit score, especially considering how important it is, but it’s important that you avoid doing this. As long as you keep all of these things in mind, you shouldn’t have any problems. Constantly worrying about your credit score is simply no way to live.