It’s easy to do something if you know the steps to take to accomplish it. Take improve credit scores for example; if you know how to improve your credit score you would do it, right? This article is to help you understand the basic steps you need to take to improve your credit score; it’s up to you to follow through and make the improvements.
It is also easier to follow through on something once you understand why you have to. The reason improving your credit score is in your best interest is because credit scores have become so important in the financial industry.
A good credit score will help you save money on fees, interest and insurance premium payments.
Tackling Credit Score Improvement
Step #1 – Pay Down Your Credit Card Balances
Keep your credit card balances as low as possible. A perfect monthly credit card balance is zero. Low credit card balances will show creditors and lenders that you take your credit scores and credit reports seriously.
A high credit score is the result of zero credit card balances or at least very low credit card balances. Impress your creditors and lenders, pay off your credit cards and in the future pay your credit card bills in full every month; you will see your credit scores soar.
Step #2 – Pay Your Bills On Time
Delinquent payments lowers your credit scores because creditors do not want to extend credit to you if your payment history shows that you either pay late or not at all.
Avoid overextending yourself; if you cannot pay your credit card bill in full once a month you are overextended.
Step #3 – Pay Off Your Other Debts
Your credit scores are a combination of credit card debt, mortgage and auto loans, student and work place loans and any other debt you may incur.
With your credit card debt, a good rule of thumb is to pay down the debt which costs you the most first. Next, make sure that you are paying some of each debt; do not skip payments on one debt to pay off another debt. Skipped payments is a curse when you are trying to improve credit scores.
Step #4 – Monitor Your Credit Score
Once a year you should order a free credit report to help you monitor your credit score. Mistakes are made on credit reports and you cannot correct those mistakes if you do not know about them. You can order a free credit report once a year from each of the 3 national credit reporting agencies, be sure to do so.