There seems to be a lot of talk about credit scores, but there is something a mite mysterious. While most people understand that a higher score is better than a lower one, many people do not take the time to find out what their score is. The questions most people keep on asking is “how can I fix my credit score.
How do I fix my credit score?
In fact, your credit score is a number that has a significant impact on many areas of your life, and it is essential that you find what it is. You are the one who is responsible for your money, and you are the one who cares the most about it, too. Knowing the complete picture of your financial health is the only way to ensure you get the most out of what you have. If you’re asking yourself how do I fix my credit, follow these tips.
Here are some tips to fix your credit score
History is important
Unfortunately, this aspect of your score is a little beyond your control. You cannot start building a credit history until you are 18 and it takes years to be classified as “good”. This means it is important to open several credit cards ASAP, keep them open, and keep them in order.
The part you can control is how long a card is opened once you have been approved. If there is a card that you no longer want to use, instead of closing it, just store it or destroy it.
Leaving the account open, as long as you are not charged an annual fee, will allow to continue to build a credit history.
Do not apply All at Once
Applying for a lot of different types of loans (ex. Credit cards) in a short period of time can lower your score … as opening a bunch of loans in a short period of time. This is a fairly easy way to fix your score. Just stop applying for a bunch of loans and opening new accounts
Pay your bills on time Always
If you have trouble remembering to pay some bills, set up automatic payments so the money is automatically deducted from your bank account each month. If this is not an option, set up automatic reminders on your phone or e-mail program schedule.
Pay down debt
Lowering your debt-to-credit ratio by paying off debt is another way to improve your score. The payment of your debt out of time (as mentioned above) is critical, but if you can, you must also repay the debt before the due date. Any little bit will help you achieve this and reduce your debt to credit ratio.
- Check your credit report three times a year
- Doing this will help you spot mistakes and fraud such as identity theft.
- You are entitled to three free credit reports in a year (one from each of the major credit bureaus).
Pull a credit report every four months and consider carefully. Take all errors seriously … they could be signs of identity theft.
Dealing with Collectors
Repaying an overdue account does not automatically remove it from your credit report. This is something sky blue credit repair can do for you. If you’re just a little late, the balance is extremely low, or you will pay the debt in full, you may be able to negotiate with the collection agency to have the item removed from your credit report.