Everyone wants an improved credit score no matter how good their credit may be. The bad news is that the better your credit score is, the harder it is to improve. While the worse it is, the faster you can give it a real boost. Having said that, there are some easy ways to improve your score quickly and over time.
Target: Improved Credit Score — Right Now!
If you want an improved credit score you’ll want to start with these easier ways to do so.
Correct Any Errors
There is a good chance that your credit score has at least one, if not more, errors. You want to have these corrected first. If the error or errors are bad enough, they can make it difficult to obtain credit. According to the FTC (Federal Trade Commission), 5 percent of all credit reports have errors that are serious enough to keep you from getting good interest rates.
You’ll want to get a copy of your credit report from all three major credit reporting agencies and then go through them with a fine-toothed comb to discover any errors. Then use the agency’s correction process to have them removed.
If the errors are bad enough, you should see your score jump up very quickly.
Pay Off Your Credit Card Balances
If you have balances on several credit cards, get them paid off as quickly as you can. This alone can turn your credit score around and take you from a bad credit score to a good one, or from a good one to a great one in very short period of time.
While it may be difficult to come up with the money to pay off the balances, do try and make it a priority. Create a strict budget and stick to it until the balances are cleared. Then create an emergency fund, so you won’t have to rely on your credit cards if something comes up.
Just be sure you keep the cards paid off once you get the balances to zero.
Always Pay Your Bills on Time
If you have had issues with this in the past, then now is the time to make a new resolution that you will pay each and every bill on time each and every month. Keep in mind, if you miss making a payment, that missed payment will stay on your credit report for a very long time, in fact for seven years.
You can’t go back and fix what is broken, but you can start building a better history today. It may not seem like that big of a deal, but your payment history is a third of what your credit score is based on. One missed payment can lose you 100 points on your score if you have good credit.
Don’t Change Your Habits
Once you have all your credit cards paid off and you are making your monthly payments on time, don’t change your habits. If you all of a sudden start paying less one month or you charge more on a credit card than you have been, the credit reporting agencies will notice.
You simply don’t want to do anything that will send up a red flag that there may be some risk coming in the future such as a divorce or a job loss. Credit card companies and credit reporting agencies get jumpy. They like to see that you are stable when it comes to your income and your expenses.
Use your available credit wisely and set a pattern. You will be rewarded with a higher credit score over time.
Improving your credit score doesn’t have to be hard. Sure, getting in a good place with your credit can take some work, but once you are there, just maintain your good financial habits and you’ll see your credit score improving all on its own.
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