Trying to improve your credit score can be a bit overwhelming -but it’s possible, you just have to remember that repairing a bad credit score is like trying to lose weight. It takes time, and there’s no quick-fix! The best way to rebuild your credit is to realize it takes time; and that it’s a constant effort.
Pay Your Bills on Time – Easiest and most effective way to improve your credit. If you can’t pay, don’t just ignore it. Call and make arrangements to avoid going in collections and having it reported on your credit.
Don’t close unused credit cards as a short-term strategy to raise your scores – unless you can’t keep your hands off a no balance card and you have to spend; avoid cancelling cards that you’ve paid off. Creditors like to see you have some self-control and you can have credit it but not use it.
Pay off Debt – whether its a doctor’s bill, credit card, or cable bill, if its a bill or collections within the last 3 years take care of it. Bad debt takes 7 years to fall off so paying off your collections and debt is the best way to improve your credit over the long term.
No Credit Cards? Get One. If you have bad credit and no credit cards you need to get one! Don’t go crazy, but this will help your efforts in improving your credit score quite a bit. Try these best credit cards if you have bad credit.
Keep balances low on credit cards and other ‘revolving credit’ – pretty much only buy what you can pay for in cash while you are trying to improve your credit rating. Credit card debt piles up quick, and this can make your sink hole sink you even quicker. Start with your lowest balance and pay as much as you can afford on that one (while paying minimums on your other cards) until it’s paid off. Then work on the next lowest, and so forth. The snowball effect can definitely help improve your credit score.