It’s hard to get along in life without an adequate credit score. If yours isn’t what it should be, don’t panic! Following these five tips will help to give your score a boost.
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1. Get a Credit Card
Using a credit card and paying off the credit on time is a sure way to raise your credit score. If you don’t have a credit card, it is extremely difficult to build a credit history and establish a strong score. OpenSky® by Capital Bank offers a secured credit card to start building better credit, and there is no credit check to apply. You don't want to apply for too many credit cards, especially if applying creates a “hard inquiry” on your credit report which could in turn lower your credit score. There is no credit check when you apply for the OpenSky® by Capital Bank thus why we recommend that specific card.
If you already have do credit cards, use them to pay monthly bills, but make sure that you make the payments on time every month. Paying off those bills in full every month is even better to avoid interest charges.
2. Check Your Credit Reports
You have three credit reports (Equifax, Experian and TransUnion) from each of the major credit bureaus. Make sure you check the credit reports from all three of these bureaus. You can do this for free from Credit Karma. Then take note of any factors that may have a negative impact on your credit score.
3. Fix Any Inaccuracies
For checking your credit reports, if you find any information that isn’t accurate, you should take steps to correct the error right away. After all, if the credit report says that you didn’t make a payment on something, it will lower your credit score even if you actually did make the payment.
Some times you may need to have a credit repair company help you challenge the questionable negative items with the credit bureaus. They ask the creditors to verify the negative items that they are reporting, and if they can't, they are required by law to stop reporting those negative items. Get a free consultation for credit repair here. There is a fee if you do decide to use their services, but the fee is probably way less on the interest and fees you are paying having bad credit.
4. Pay Off Balances
Having unpaid debt on your credit report has a serious impact on your credit score. But, paying off these debts shows responsibility, and causes your credit score to raise. Once you’ve paid off your debts, don’t get them removed from your credit report. Keeping these records of paying off debt will actually improve your credit score.
5. Make Payments On Time
Whenever you buy anything using credit, make sure that you pay off your financial institution on time. Not only does paying off credit immediately improve your credit score, it will save you money in the form of interest that you won’t have to pay over time.
Don’t expect your credit score to improve overnight. Things don’t work that way. But, with due diligence you will see steady improvement over time.