Getting an annual free credit score is important to check for any errors, delinquencies, and to get a gauge on how banks see you as a borrower is important for your financial future. It doesn’t matter if you have good credit, bad credit, or excellent credit. There is always a way to improve your credit score.
Here are 5 steps to help you improve your credit score, no matter how bad or good your credit score is currently at the moment:
1. Do not pay just the minimum on your credit card.
With the new Credit Card Act of 2009, credit card statements now show how long it would take to pay off your balance if you pay just the minimum each month. Even with a small balance, sometimes it takes years to pay it off. Make sure that you pay off more than the minimum each month or else you will never get out of debt. The ideal thing is to pay off your balance in full.
The credit bureaus look at the amount of time it takes for you to pay off your debt when calculating your credit score. It is not only good to pay off your debt sooner to not waste money on interest, but also to give a boost in your credit score.
2. Work it out with your credit card company.
If you have debt with a credit card company, sometimes it may be hard to pay those bills on time. To make sure you pay it on time and to lower your interest that you pay, work out a plan with your lender to negotiate a revised payment plan. Some lenders will even forgive a portion of the debt if you can work out something that pays them back sooner rather than later.
Approach the lender and ask for more time to make payments. That way you will not be late in making any payments or missing any. Having late payments or no payments to your bills will definitely hurt your credit score.
Click here to see your credit score for free. Yes, it is really free at ReallyFreeCreditScore.com.
3. Do not use credit cards anymore and stick with strictly debit cards.
Having credit card debt is not contusive to having a good credit score. If you are having troubles getting out of debt or seem to be getting into debt, use a debit card and cut up the credit card. This way, the amount of money you are spending is directly being taken out of your account. There won’t be anymore guess work on how much you are allow to spend and use.
4. Stay away from those store cards.
It may be tempting to sign up for store cards which offer you an immediate 10%-30% off your purchase if you sign up. But resist these temptations as you are just adding to your credit card collection. Opening up new lines of credit often will hurt your credit score. If you are in debt, you shouldn’t be shopping in department stores anyway and should be focusing on paying down that debt.
5. Pay particular attention to your credit report.
This last tip is the most important of all the 5 tips. Get your credit report and get it often. Check any errors that may be on your credit report and get that taken care of immediately. You can even comment on current debts and why it has not been paid off immediately. This will allow lenders to see more than a black and white view of your credit report.
Click here to get your free credit score. Add comments to your current credit report for lenders to see.
