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5 Ways to Boost Your Credit Score

It is vital that you maintain a good credit score as this will impact so many things. If your credit score is not that high then it can negatively affect your ability to get a new job, acquire a cell phone, get a mortgage or rent a property, obtain insurance and even secure utility services.

So, we will provide you with 5 proven ways that you can use to increase your credit score. Please remember that increasing your credit score is going to take time and that there are no overnight fixes. Follow the advice below and you will improve your credit score for sure.

1. Get Your Credit Reports and Check Them

If you are a citizen of the United States then there are three credit report bureaus that will have reports on your credit. They are Trans Union, Experian and Equifax. Sometimes these bureaus make mistakes on your credit reports which can negatively impact your credit score.

Request your credit report from the three bureaus for free. They will send them to you in the mail and if you need them quickly you can pay for them. Closely examine all of the reports for errors and contact each bureau to have mistakes rectified if you find any.

2. If You Have Outstanding Collections Then Pay Them

The credit reporting companies take a very dim view of unpaid collections. It doesn’t matter how small the amounts of the unpaid collections are. In their opinion, if you have unpaid collections it suggests to them that you do not take responsibility with your finances.

Scrutinize your credit reports for unpaid collections and pay them all as fast as you can. You want to eliminate all of the unpaid collections on your credit reports as fast as possible as this will be a big help in improving your credit score.

3. Commit to Make Payments on Time

If you make payments late or miss any payments then this will reduce your credit score. So, make a commitment to pay all of your monthly payments prior to the date they are due. Even if you only make minimum payments on your credit cards on time it is much better to do this than be late.

Another good reason to make your credit card payments on time is that they have the right to increase your rates of interest if you do not do this. Late payments will show up on your credit reports and are not good for your credit score.

4. Credit Card Outstanding Balances and Credit Limits

The way that you utilize the amount of credit available to you with credit cards has an impact on your credit score. Do not exceed 50% (at worst 60%) of the available credit that the card companies offer you. If you exceed this recommended utilization score then it is likely that your credit score will reduce.

If you have a high utilization score then pay more than the minimum payment each month to lower your outstanding balance. Another strategy that you can try is to ask your credit card companies to raise your credit limit. This is not a reason to go on a spending spree, you need to be disciplined here.

5. Control Your Money with a Budget

If you do not have the opportunity to earn additional income then the best thing you can do is manage your money better. Create a budget for all of your expenditure including regular monthly payments that you have to make.

Record all of your spending in your budget. Review it often to see what spending you can eliminate. This will help to free up more of your money for driving down your credit card balances. 

At Credit Achievers we have a wealth of experience helping people improve their credit scores. We deal with all of our clients in an empathetic way and we will be your trusted partner to improve your credit. Find out more here.