It seems ironic that you need credit to get credit, but here’s the big difference, people don’t need debt to get credit, in other words it’s time to pay some debt in order to boost your credit.
Here are five simple steps you can take to clean up your credit score, it will be hard for some of you but the benefits are greater.
1. Pay your debt
One of the most important steps to help your credit is paying down certain types of debt and that would be keeping your credit utilization as low as possible. Your credit utilization is the ratio of your total revolving credit balance compared to your credit limit (revolving credit includes lines of credit, credit cards and home equity lines).
2. Pay bills on time
Another great step you can take is paying your bills on time so you have a good payment history, which can be reported to the credit bureaus.
So try to pay on time so your credit score doesn’t suffer, I know it’s easier said than done but it’s a great step to improve your score.
3. Check your reports for errors
You can potentially boost your credit score by checking for errors on your credit reports, make sure it’s accurate because it will bring your score down by a mistake you didn’t make, it’s unfair yes, but it has happened so always make sure the information is correct.
You can get a free credit report from all three credit bureaus every year.
4. Keep credit card balance low
Like mentioned in the first point, keeping your utilization rate low is helpful, a high debt-to-credit ratio is a warning sign so keep a minimum quantity and don’t let it get higher each time.
5. Protect against identity theft
This one is similar to point 3 in a way that your credit score will be damaged but not because of you, in this case it was not a simple error but fraud can ruin your credit so check for suspicious activity and report it immediately.
These are just some examples of ways we can help boost your credit, make sure to contact us for more information and we’ll have a solution that’s right for you.