5 steps to increase your credit score

2 Mins read

If you’re like most people, then you probably think about your credit score often. From buying a home to finally getting your dream vehicle, your credit is examined closely. In fact, your credit is checked for many different things.

Unfortunately, it is far too easy to see that credit score drop. But on a positive note, there are some simple steps you can take to increase that ever-so-important credit score.

In this post, we’ll discuss 5 easy steps you can take to see that score jump to places it’s never been!

Examine Your Credit Report

All humans make mistakes; it’s a fact of life. That being said, even credit card companies or credit bureaus make errors. Therefore, you’ll want to keep a close eye on your credit report to ensure everything looks correct. Here are some common errors seen on credit reports:

  • Addresses that aren’t yours
  • Random names or social security numbers
  • Accounts with the wrong information
  • Accounts that belong to someone else

Although rare, these mistakes do happen. But in order to get an accurate depiction of your credit score, and to possibly raise it, ensuring all of the data is correct is a step in the right direction.

Pay Bills On Time

A sure way to give your credit score a boost is to ensure that you pay your bills on time. If you’re behind on payments, then you’ll continue to see your credit score drop. But as payment history accounts for approximately 35% of your credit score, then this could be a huge reason why your score isn’t where you want it. If you have a habit of missing payments, try to set up automatic payments and try to improve your spending habits.

Pay Down CC Balances

Your credit score is greatly impacted by the debt you owe. And for many people, the majority of their debt lies with credit cards. If high credit card debt is troubling you and you want to boost your score, then paying down your balances is a step you need to take.

Use Credit

In order for creditors to accurately update your credit report, you must regularly use credit. Using cash or debit may sound like the smarter and safer option, but actually using credit and paying it off is a key way to boost that credit score.

Monitor Your Report

To see your hard work paying off, it’s important to closely monitor your credit report. This key info can also help to keep the momentum going as you’re making smarter choices about your finances. There are tons of resources out there that help people keep track of their credit score and everything going on with your credit, so be sure to use these tools and services as you see fit. Some providers will even send notifications to your phone or email when your credit score changes.

Student, Car, and Home Loans for Bad Credit

If you have bad credit and need a loan fast, then there are some providers who can help. In fact, making payments on a new loan can help to boost your credit score. So if your credit isn’t where you want it, you still have loan options.