What’s your credit score? 300? 450? Many individuals suffer from poor credit scores and have no clue how to improve it. Is this you? Well, fret not. There are many ways in which you can improve your credit score in less than six months!
Beware. This is not an overnight process. It requires a lot patience and smart strategy. Follow these steps and in no time you can turn a poor credit score into a better credit score.
Check for errors on your credit report. Your credit report directly affects your credit score. It is not uncommon to find negative things that should have aged off or even evidence of identity theft. Should you find any errors, report them to the relevant authorities to get a revised credit score.
Create a Budget when you get paid. Calculate how much of your income will go towards groceries, gas, utilities, etc and how much you are able to save or use to repay outstanding debt. Stick to your budget and resist overspending on non-essentials.
Pay your bills on time as missed payments are delinquencies which directly affect your credit report, and as a result your credit score. Do not wait until the last minute when you are pinching pennies. Ensure bill payment is a first priority when budgeting your money.
Pay off old and new debts beginning with your credit card bills. When budgeting, dedicate a portion of your income to debt repayment. Do not use your credit card to repay debt, you’ll only find yourself with more debt and worse credit.
Use cash instead of credit as this directly minimizes the amount of credit you use. When shopping , leave your credit card at home.You will not be tempted to spend above your budget as you will only be able to spend what your cash will afford.
Seek professional help from a financial advisor. He/She will advise you on what you need to do to improve your individual poor credit score. Financial advisors may be found in any local CPA Firm.
You determine how good or bad your credit score will be. We may not all be responsible when it comes to how we handle our money and may make mistakes along the way. Avoid poor credit by following these simple steps and watch your poor credit score improve over time.