canstockphoto8042110If you’ve recently tried to buy a home or purchase a new car only to find out that you weren’t qualified, this can leave you surprised and disappointed. Building and maintaining a good credit score is important in our everyday lives. You will need it to purchase a new home, pay for your education and some jobs require their employees to maintain good credit. Rebuilding your credit isn’t hard to do. Here are five ways to Boost Your Credit Score.

 

Check For Errors

Checking for errors is one of  the best methods you can use to Boost Your Credit Score. If you don’t stay up to date on your credit report, there may be errors that you aren’t aware of that’s lowering your credit rating.

If it shows that you made a late payment for something that you paid on time, make sure that you get it straightened out. You should check your credit report with Equifax, Experian and Transunion at least once a year to ensure the information is accurate.

 

Make Payments Promptly

Making your payments on time consistently is another way to boost your credit score. When you are making a purchase with your credit card, pay it off as soon as possible. Many people view their credit card as an ATM since it’s a convenient way to pay for their purchases.

You should always keep the credit card balance lower than half of the credit limit. For example, if your card has a $5,000 credit limit, you should maintain a balance below $2,500.

 

What if you have a history of making late payments? You should simply start making your payments on time. It may take some time, but your score will eventually turn around.

 

Get Rid of Any Open Accounts

There may be things that you haven’t paid off that has a negative impact on your credit score.

What if you don’t have the money right now? It isn’t necessary to pay the total amount. Just pay whatever you can until the balance is down to zero. Neglecting your bills will reflect badly on your credit.

 

If you are receiving harassing calls from the bill collectors, avoiding the situation won’t make it go away. Negotiate with the company on when you will be able to pay off the entire amount that you owe on the bill. If the bill collectors cross the line, then you should hire your own attorney to handle the matter.

 

Raise Your Credit Limit

Raising your credit limit will improve your debt to credit ratio and enhance your credit score almost immediately. You should keep in mind that your credit card company may not approve your request, but it won’t hurt to ask.

If your request is approved, stay disciplined. You may be tempted to overspend now that your credit limit is higher. Make sure that your spending habits are under control. Getting a higher credit limit only helps if you are a Smart Spender.

 

Don’t Cosign Anything For Anyone

You can prevent yourself from getting bad credit if you just say NO. Friends and family with a bad credit history of their own may ask you to co sign for a loan, new car, or even a cell phone. You should never co sign for anyone to get anything on your credit. If the banks aren’t willing to take a chance on them, then you shouldn’t either.

 

Making your payments on time, raising your credit limit, getting rid of open accounts, and checking for errors on your credit report are a few ways you can Boost Your Credit Score. Use these methods to your advantage and watch your credit score skyrocket much sooner than you imagine.

Tagged with:

Filed under: BudgetMoneyPersonal Finance

Like this post? Subscribe to my RSS feed and get loads more!