5 Ways to Boost Your Credit Score
Fixing your credit score can be very stressful at times and it feels like it’s never ending where the bills keep piling in and it seems like you’re making no progress. While most people tend to just give up and declare Bankruptcy, there are many ways you can fix your credit score and start off where you started when you first grabbed your first Credit Card.
Here are a few steps you need to take immediately so that you can re-build your credit score — some of these steps aren’t hard at all and in fact you can start these today, while others are going to take hard work and dedication.
1. Make it a habit of paying your bills on time! This it the single most important item that causes credit scores to suck. You are telling your creditors that you are not trustworthy if you don’t pay on time. To boost your credit score, take advantage of your banks “online bill pay” service that enables you to pay your bills on the internet.
Not only is paying your bills online quick and easy, it is also secure and cheap and can help boost your credit score by automating the bill paying process. You will never have to worry about a late payment or wondering if you have a stamp.
2. If you can, pay more than the minimum due on your credit cards and other loans. This will show the credit bureaus that you are serious about paying off your debt in a timely manner and this can boost your credit score in and of itself.
3. Try to keep your credit card balances below the 50% debt to credit threshold. This can boost your credit score by showing the credit bureaus that you are responsible and not looking to max out your credit lines.
4. Don’t close old accounts. Credit bureaus like to see a long credit history. To boost your credit score even more, use that old card in your wallet once in a while and then take a few months to pay it off. Again, this shows that you are responsible borrower.
5. Only buy things you can afford. Don’t have the mentality that “I’ll pay it off when I can.” This is a recipe for credit disaster. Boost your credit score by only buying items that you can pay for in cash or over the course of a few months. Not only is this responsible borrowing, it is cheaper. Any savings on interest is a good thing.