To keep more of your money in your pocket, have you ever considered improving your credit score? Unfortunately, credit scores are the last thing folks think about when they find money tightening up.
Improving your credit score is not hard to do, it just takes a bit of effort on your part. The speed at which you can improve your credit score is up to you and how much effort you want to put into it. Are you up to the challenge?
How To Improve Credit Score
Step # 1 – Learn Your Score
Before you can start improving your credit score you need a starting point. Maybe your credit scores don’t need credit repair. You may already have high credit scores; but until you learn your score, how would you know.
Start by ordering your free credit score. You can get your free credit score once a year. Upon your request, each of the 3 national credit reporting agencies have to give you free credit score once a year.
300 to 750
A credit score ranging between 300 to 750 is in need of credit repair help. But do not panic; there are credit repair services available. These credit repair services specialize in credit repair. You will pay the highest prices, premiums and interest rates if your credit score falls into this range.
750 to 850
If your credit score is between 750 and 850 you are doing okay. The closer your score is to 850 the better. Creditors, landlords, insurance companies and loan companies look at this range as workable.
If you have a credit score of 850, you are perfect; your credit score is perfect that is. Creditors, landlords and businesses will love to do business with you because you won’t cost them any money. The fact that your credit scores are at 850 means you pay on time, you don’t have past due accounts, you are in collections.
Step # 2 – Improve Your Payment History
The next step to help improve credit scores is to order your credit reports. Your credit reports will show your payment history. Your payment history is so important, it makes up 35% of your score.
Thirty five percent of your credit score is your late payments, skipped payments, past due accounts; that’s your payment history.
To help improve your payment history you may want to consider automating your bill paying. If you automate, your bills will be paid on time. By automating your bill paying you are essentially putting bill paying on auto pilot. If you automate will be less tempted to spend your money before you pay your bills.
Step # 3 – Improve Your Credit Utilization Ratio
Your credit utilization ratio is the amount of credit made available to you compared to the amount of credit you use. This ratio is important because it is the second largest part of your credit scores; 30% to be exact.
Thirty percent of your credit score is your debt and how much you charge up your credit cards. The simplest way to help improve credit score is to pay down your debt.
If you think about it, debt is such a waste of money. Spending more much money than you earn makes the items cost more in the end due to high interest rates, late fees and damages to your credit scores.