3 Ways to Improve Your Credit Score

3 Ways to Improve Your Credit Score

It’s important know thier is no quick fix when trying to repair your credit. It can be done but it takes time. To rebuild your credit you need to start managing it responsibly over time. Once you starting doing that you can begine to work on your credit score improvement. These tips can help you do just that.  

Start Paying on All Open Accounts

First you must start paying your debt, because the main part of your credit score is the payment history. When we miss a payment that’s when most of the damage to our credit score happens. Work on bringing all of your open accounts current.

However if your debt has already went into collection once it hits your report, the damage is done. So at this point paying off the collection item does not actually help your score.  So whether or not you pay your collections off is really a personal decision at this point. So make sure to keep paying on your debt to keep your accounts current and don’t let it go into collection.

Don’t Miss a Payment

Another portion of your score depends on if your paying on time. I know paying when you should sounds easy, but not if you don’t have the cash. Keep in mind your bill does not have to be paid in full to have a payment considered as on-time. So even if your strapped for cash you only have to pay the minimum. However this could take years to pay off your balance by only paying the minimum, and you’ll pay more because there will be lots of interest tact on. Keep that in mind and pay more whenever you can. For more on improving your credit score visit mred.com.

When you don’t have a lot of  money it’s better to pay something rather than nothing. Don’t forget you can make more payments at any given point in the month when you have extra money. Just make sure each month you are making a payment of at least the minimum, and at all costs avoid paying more than 30 days late.

Don’t Neglect Your Other Payments

Remember your credit card activity isn’t the only activity that gets reported then later showing up on your credit score. So make sure not to neglect other payments. Be sure to get a copy of your credit report to find out what else could be affecting it. This way you can find out exactly the debts that are affecting your score and get them paid off.

Conclusion

You don’t need lots of money to have a good credit score. It’s all about making the right decisions with your money. Make sure to learn the rules of a good credit score so you can make the right choices.   

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