6 Necessary Steps To Improve Your Credit Score
Your credit score is so important and especially so in today’s economy. If you have an above average or excellent credit score it is so important to maintain your score. If your score is average or below you should be working on ways to improve your score.
Raising your score does not come over night but you can improve your score yourself. By improving one or two things you should see your score improve sometimes drastically.
- Get Your Credit Report and Scores
- Pay All Your Bills On Time
- Keep Your Credit Card Balances Low
- Do Not Close Unused Accounts
- Only Apply For Credit When You Need It
- Try Not To Claim Bankruptcy
This is one of the most important steps. If you need to look at your credit report and see if there is any thing that is being reported wrong.
One of the best ways of improving your score is to make sure you are paying your bills on time. It is so important that you make at least the minimum payment every month. Put yourself on an automatic payment plan.
You are looked at as a credit risk if you max out your credit cards. If you do have them maxed out your first goal is to get them to 50% of the credit limit. That means if you have $1000.00 credit limit you should have only $500.00 of debt.
After you get them to 50% you really have to shoot for 35% or under. This is where your score starts to go up. The best goal is to get them to 10% or under.
You might have the urge to cut up a card but the length of your credit history is important. If you don’t want to use a card put it inside a plastic container filled with water and freeze it. That way you keep credit history and it will be harder for you to get at your card.
Credit card companies are very good at tempting people with the next super card. Don’t apply. By applying for credit continuously makes you look like a credit risk. Only apply when you need credit and then shop around for the best rate within a couple of weeks time.
This might seem to be your only route out of debt. You should try everything you can to avoid claiming bankruptcy. Try negotiating with your creditors. If you do have to file bankruptcy you are just going to have to build up your credit slowly.
Your credit score is very important to your financial well being. Continue to monitor your credit reports and scores frequently. Take all the necessary steps to raise your score and maintain your score because it is your financial future.
