Credit scores influence many aspects of your life, including approval to rent an apartment or take out a loan. If you have bad credit, you’ll be less likely to be approved for those things. Here are five tips to improve your credit score.
1. Work out Payment Options
The simplest way to improve your credit is to make sure you make bill payments on-time. If you pay bills online, you can set automatic payments. Alternatively, you can set reminders for yourself or note due dates in a calendar or planner to help you remember. For overdue bills or times when you’re unable to pay the full amount of a bill, you can always reach out to the lender about your options. You may be able to extend your payment grace period or make a partial payment. If you have the funds, you can also pay twice a bill cycle, which can help you chip away at interest payments and reduce credit utilization.
2. Ask for Help
In some cases, family members can help you improve your credit score. If someone in your family has good credit and is willing to, he or she can add you to his or her credit card account. This would make you an authorized user of the account and you can then inherit your relative’s good credit. This method is most commonly employed by parents attempting to help their children establish or improve their credit scores.
3. Monitor Your Accounts
Sometimes, your credit score can dip through no fault of your own. Human error may play a part in issues on your credit report. Monitoring your report and accounts can help mitigate any errors or mistakes.
4. Consolidate Your Debt
While a debt consolidation plan enrollment can cause a short-term dip in your credit score, this option tends to be a healthy choice for your credit score overall. These programs help you roll all your debts into one account so you only have to make one monthly payment rather than keep track of multiple payments. You must still make that payment on-time but it makes repayment much simpler.
Diversifying your accounts can greatly improve your credit score, and you can take out bad credit loans in Ohio and other states if you’re especially concerned. However, any new account will do, as long as you’re good about making payments on time. You should avoid canceling current credit cards or closing accounts unless some sort of fee that affects your debt is involved. Canceling these accounts before you pay off your balance can have a negative impact on your credit score. When you open a new account, you should focus on accounts you can actually use, for example, a student loan or car loan. Avoid opening a new credit card account if you’re already trying to pay off a credit card.
If you’re concerned about your credit score, start working on improving it as soon as possible. If you feel out of your depth, you can get professional assistance.