Having bad credit can negatively impact your life in more ways than one. You may not realize it until you find yourself in a situation where your credit report needs to be pulled. At this moment, you may begin to feel panicked.
Will you not qualify for that loan? Will your bad credit prevent you from getting into the apartment you want? How will it affect you when going to buy a car?
These are all important questions to ask yourself. No one wants to be held back in life due to their credit. Strategies to improve your credit score will ensure you bring your credit score up and offer all lenders, landlords, and everyone else a solid credit report.
To learn several strategies for building a credit score, continue reading below. Here’s everything you’ll want to know about raising a credit score!
1. Start With a Credit Review
One of the first things you can do to start building your credit is review your credit report. Take a look at what your current credit score is and what’s bringing it down. You want to carefully review every detail on your credit report to ensure there aren’t any errors as well.
If you find any discrepancies on your credit report, then they need to be reported as soon as possible. These errors need to be corrected, which will then help bring up your score. It’s also important to note exactly what’s bringing your credit score down and which debt has the biggest impact on it.
This will let you know what debt should be paid off first.
2. Begin Paying Off Debt
Now that you’ve reviewed your credit report, you can now begin paying off your debt. Start with the debt that’s affecting your score the most or debt with the highest interest rate. You can pay these debts off quicker by putting more money towards them than what’s due.
You want to pay all of your debt or bills on time, but these are the ones to focus on the most. If you can put a few extra dollars towards paying the most-impactful debts off first, then do so. This will help bring your credit score up faster.
3. Set Up Payment Plans
Something you can do to prevent past-due payments is set up a payment plan. You might be surprised by how many companies will offer you a payment plan when facing financial hardships. The only way to find out is to contact each one and ask.
The worst that’ll happen is they tell you they can’t offer you one. Otherwise, you can then set up partial payments so you can still put money towards your bills without being hit with a late fee or being sent to collections. In return, it’ll help your credit score because it can help bring you out of debt or prevent you from going into debt.
4. Keep Credit Cards Open
Credit cards are one of the best ways to build credit. As a young adult, you most likely thought you’d have great credit for paying your car loan on time or paying your rent. Later, you find out that these loans don’t have as much of an effect on credit as you’d like.
Instead, you need to open a line of credit with a credit card to really build your credit score. If you don’t want to borrow too much money, then you can start with a $500 limit. Then, simply keep the credit card open (even if you don’t use it).
Any credit cards that you have that you don’t use should stay open to continue to build your credit. If you close these accounts, then it could negatively impact your score.
5. Ask For a Higher Limit
Asking for a higher limit can actually improve your credit score if you have the willpower to not touch the money. Raising the amount made available to you on your credit cards but keeping the amount used at the same percentage will help bring your score up.
Remember the 30% rule. If you can keep your credit usage at 30% or lower, then it should help your credit.
6. Handle Your Collection Accounts
Do you have an account currently with collections? If so, then you should consider contacting the collections agency and determining the quickest way to pay off these debts. Then, you want to make sure the collection agency agrees to stop reporting the debt.
You can remove collections accounts from your credit report once you pay it off or if they’re not accurate.
7. Take Advantage of a Credit Repair Program
Although there are many great ways to improve your credit score on your own, there might come a time when you need a bit of professional help. If you feel as though you need help bringing your credit score up, then it’s time to take advantage of a credit repair program. This type of program can provide you with the credit restoration tools you need to fix your credit.
It’s a DIY program built by professionals who understand what it takes to repair and build your credit the right way. You’ll be given all the resources and knowledge you need to turn your credit score around.
Use These Strategies to Improve Your Credit Score
Are you faced with no credit or bad credit? Failing to have good credit can have a negative impact on your goals and daily life. We don’t want your bad credit score to prevent you from reaching your life goals any longer.
Use all of the strategies to improve your credit score listed above to start building your credit score back up. Then, make sure to contact Credit Score Blueprint. We’re a full DIY credit repair program that provides you with the tools and resources you need to restore your credit.
Sign up now to learn more and get started!