Many consumers complain that it’s difficult to raise their credit score once it’s been damaged. This idea is far from the truth. It doesn’t matter how bad your credit report was in the past. With the right education, you can improve your three-digit number over time. In this article, we will discuss five tips you can use to raise your credit score.
- Know how money works
Learn the ins and outs of how money works so you can be better prepared to pay your bills. You should also read books on money and budgets and attend seminars. By doing this, you will never miss a payment, thus increasing your credit score.
- Staying in financial shape
When applying for loans, a lender will look at your savings, income, and employment. You want to make sure you keep a good amount of savings in your bank account to show the lender that you have discipline when it comes to handling money. They will also look at your income to see whether you make enough money to keep up with the monthly payments. Finally, they will look at your length of employment to ensure that you are stable. These factors will help you get a loan, which will ultimately help you improve your credit score in the long run.
- Late fees removed
If you are late with a payment, ask the lender to waive the late fee as a courtesy. Most lenders will do so if you have not used all your late fee waivers for the year. Lending institutions allow either one or two late fee waivers annually. Then, take the money they were going to charge you and apply it to the balance on your credit card.
- Stay organized with your bills
Get a filing cabinet to track your bills and place them in an area where you can access them quickly. Know the date of your payments and use calendars to remind you of your due dates. Take advantage of automatic payment deductions and electronic email reminders from creditors when they are offered. By employing these strategies, you should never miss a payment and as a result, you will improve your score.
- Set goals
Set goals to track your credit repair efforts. For example, create a tracking list for your credit repair letters. Note who you send letters to and when. Set up reminders to check your score regularly to see if it has improved. Create dates for when you are going to pay off your debt and recheck your score.
As you can see, the tips disclosed are simple and straight to the point. Now that you have empowered yourself with new knowledge, go out there and take action.