You Owe It To Yourself | Improve Your Credit Score

Having a good credit score in today’s financial world is so important, but unfortunately, some folks don’t take their credit score seriously enough.  The time to take your credit score seriously is not when you are in a financial bind.  Credit repair should be done long before you need a loan or mortgage or any other type of financing.

A good credit score means you will pay less for things; isn’t that worth taking the time and effort to learn how to improve your credit score?

An improved credit score means that creditors, insurance companies, landlords, loan companies, utility companies and cell phone companies will see you as a customer they can do business with at lower rates and fees.

Steps To Improve Credit Score

 

Step #1 – Your Payment History|Pay All of Your Bills On Time.

When creditors see a history of late payments, they assume you are in financial trouble.   You may just be forgetful and miss the due dates, but creditors don’t know that, they assume financial trouble.

One way to make sure you are paying your bills on time is to set them up on automatic payment plans.   These payment plans are easy to set up and monitor, and will save you money in the long run because you will not be paying late fees.

Late payments lower your credit score.

Step #2 – Your Credit Card Balances|Keep Your Credit Card Balances Low.

improve credit scoreThe financial industry views high credit card balances as another sign of financial trouble.   They assume that if you were not in financial trouble you could pay the credit card balances off.

There are no advantages to carrying credit card balances; you pay fees, and high credit card balances lowers your credit score.  One way to make sure you do not carry credit card balances is to only spend what you can pay off every month.

Step #3 – Your Credit Card Limits|Spend Below Your Credit Limits.

If you spend up to your credit card limits, you appear to the financial industry as perhaps at a breaking point.   Creditors and lenders charge more for services or don’t work with individuals who could be at a breaking point.

Financial experts say that a good rule of thumb is to only spend up to 30% of your credit card limits.   The financial industry uses this benchmark to evaluate potential customers, so you should use the same benchmark.