How to Improve My Credit Score?

Your credit score is very important to your life. Not only does it help determine whether you can get a credit card or what kind of interest rate you get on loans, it also may affect your rates for insurance and even whether or not you get a certain job.If your credit score is less than stellar, you may be asking yourself, “how to improve my credit score.” Luckily, the answers are a lot easier than you might think.

How to improve my credit score starts with checking your credit score. Your credit score will show you what blemishes you have that need fixing and also any errors that might be pulling down your score.

how to improve my credit scoreThe first thing you should do to start fixing your score is get caught up on any bill payments that are past due. Not only will this help you start fixing your credit score, it will also save you money by cutting down on finance charges and late fees. Also, make sure to stay current on all your other bills. Bill payment history accounts for 35 percent of your credit score.

Another thing you should do to when working on the “how to improve my credit score” plan is to pay down as much debt as possible. The amount of debt you carry accounts for about 30 percent of your score.

The best strategy is to pay down debt with the highest interest rates first, although you need to make sure you are making at least the minimum payments on other debt to avoid being hit with late payment fees.
Don’t open new credit card accounts when you are trying to boost your credit score. Although this can give you more available credit and make your debt load look smaller, it can also shorten your credit history, which can lower your score. Your score might also take a small hit from the inquiries generated by your credit applications.

Another thing you don’t want to do when trying to improve your credit score is to close accounts. Though this may seem like a good strategy, especially if you are trying to avoid the temptation to spend more, it actually hurts your score. Closing credit card accounts can shorten your credit history and also make your debt load look larger, both of which will hurt your credit score.

How to Improve My Credit Score Quickly?

Keep in mind that while all of these actions mentioned above will help to improve your credit score, it will take time.

Other than correcting an error, there is no magic fix to raise your credit score instantly.

It takes time but there’s no harm in getting a free credit report every couple of months just to see how things are improving.