Having a low credit score can be debilitating and stressful. It can hinder your ability to rent an apartment, take out a loan, get a security clearance and even apply for certain jobs. If you find yourself with a 319 credit score, don’t lose hope. You can get back There are certainly ways to improve your credit score, and this blog post will explore some of the ways to doing just that.
1. Pay Off Your Debts.
It may seem like a no-brainer, but paying off your debts can dramatically improve your credit score. Prioritize paying off your debts with the highest interest rates first. If you have multiple credit cards, focus on paying off the one with the highest balance. If you can’t pay the entire balance, pay more than the minimum payment each month.
Note – it’s mathematically quicker to pay off the highest debt first, but it’s often not emotionally satisfying. So if you need to, consider paying off some smaller debts first. So, if you have $200 or $300 debts, get those paid off first for an early win. Your credit utilization is a major component of your credit. So not only will you be paying less in interest, your motivation and credit score should increase.
Lastly its easy to say “pay off you debts”, but less easy to find the money to do it. If you want a good list of ways to make extra money, consider reading Nerd Wallet’s list of ideas, as well as Saving Advice’s list.
2. Keep Your Credit Utilization Low.
Credit utilization refers to how much of your available credit you are using. To keep your credit utilization low, use only a small portion of your available credit. Ideally, you should aim to use less than 30% of your available credit. It might help to keep a low balance on your credit card and/or pay it off more frequently.
3. Get a Secured Credit Card.
– A secured credit card requires a deposit as collateral, which will act as your credit limit. This deposit serves as insurance for the bank in case you can’t pay your dues. By using a secured credit card and paying your balance on time, your credit score will start to improve gradually. You can also check with your bank or credit union to see if they offer secured credit cards. This will help your credit score by keeping your utilization low.
4. Check for Errors on Your Credit Report.
Errors on your credit report can hurt your score. Check your credit report regularly to make sure it’s accurate. If you find errors, dispute them with the credit bureau or the company that reported the error. This may show lenders that you are proactive when it comes to managing your finances.
5. Ask for Help, but Be Smart About It.
If you’re struggling to improve your credit score, there’s no shame in asking for help. Consider getting a credit counseling session with a reputable credit counselor. They can help you create a budget, negotiate with creditors, and put together an action plan to help you pay off your debts. Avoid the for profit places that will exploit you. Instead, go with one from the Federal Government Consumer Finance Protection Bureau. You can find their resource page here.
6. Consider A Tradeline.
There is one controversial way to improve your credit. But it won’t work unless you address the reasons why you got a 319 credits score in the first place. There are companies that will match you with someone who has good credit so you can be added as a user on their credit cards or other accounts. This is called “tradelines” and has the effect of adding a line in good standing to your credit.
That said if you want to cross over onto the tradelines dark side, you can find a marketplace for them here.
That said, if you are upside down because you don’t have income or you have a personality disorder, or you were in prison, you probably need to address those issues first. Spending money on a tradeline won’t help if you don’t root out the underlying cause of your financial situation.
7. Fortify Your Mental Health
High debt loads, poverty and low credit scores are correlated with poor mental health. So, when you are in a ton of debt, or struggling with a low credit scores, it can be hard to make good decisions. Consider doing something simple like practicing gratitude, prayer or spending with a supportive loved one. These should put in a better frame of mind and help you openly discuss your situation.
Yes, You Can Improve Your 319 Credit Score
So, a 319 credit score is pretty bad. But with some effort and time, you can turn things around and improve your credit score.
This isn’t going to happen overnight, but with diligent effort, you can see significant improvements in your credit score.
Finally, to share some inspiration with you, here are three stories of people who successfully raised their credit scores. => here.
James Hendrickson is an internet entrepreneur, blogging junky, hunter and personal finance geek. When he’s not lurking in coffee shops in Portland, Oregon, you’ll find him in the Pacific Northwest’s great outdoors. James has a masters degree in Sociology from the University of Maryland at College Park and a Bachelors degree on Sociology from Earlham College. He loves individual stocks, bonds and precious metals.