How to Immediately Improve Your Poor Credit ScoreAnna Newell Jones
I always like to keep an eye on my credit score. There’s something about seeing that number that makes me get competitive … with myself! I always want to get it just a little higher!
There are many factors that can negatively affect your credit score. If it has been awhile since you last checked in on your consumer credit score, now is the time to review where you are. Even if you don’t need a loan in the near future, your credit score still matters for a number of reasons, including the cost of auto insurance and qualifying for a new job. It is important to rebuild poor credit scores and maintain better credit in the future.
Immediately Improve Your Poor Credit Score – Hereâï¿½ï¿½s How! 1 of 8
Click through for 7 things you can do right now to bring up your low or to get your good credit score a little higher!
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Order Your Credit Reports and Score 2 of 8
You can't know where you are going until you know where you are credit-wise. Consumer credit reports are available from the creditor reporting bureaus for free one time a year. This doesn't include your credit score, just your history, but you can pay a small fee for the inclusion of the score.
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Correct Inaccurate Information 3 of 8
Each credit bureau provides instruction for correcting inaccurate information on your credit reports. Misspelled names, incorrect balances, or account misreporting can all be corrected which can increase your credit score. Mistakes should be addressed as soon as possible and be sure to document your actions along the way.
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Prioritize Your Debts 4 of 8
Use the information on your credit reports to analyze your financials and write down all of your existing debts. If your credit limits are close to the max, you'll need to create a plan to reduce your debt load. This can increase your credit score ratios and bring up your score.
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Make On Time Payments 5 of 8
Use a calendar on your phone or on paper to note all due dates for your bills to ensure you pay them on time. To make it even simpler, automate your bill payments each month to ensure that your bills are never late. Late or missed bill payments can drop your score significantly, especially if it happens frequently.
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Use Credit Cards Wisely 6 of 8
Using your credit cards can actually help your credit score, provided you use them correctly. Make small charges on your credit cards and then pay off the balance in full at the end of each billing cycle. This can help your credit score increase by showing responsible use of credit. If your cards already have a large balance you are not able to pay off in full, this strategy will not work effectively.
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Don’t Apply for New Credit 7 of 8
If you are looking at a low credit score, now is not the time to apply for new lines of credit, loans, or financing of any kind. Work on increasing your credit score if you know you'll be looking for financing in the future to get the best rates. But if you open a lot of new credit at one time, it can appear to lenders you are not careful with your credit usage and you'll lose credit score points for overextending your credit.
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Strengthen Lack of Credit 8 of 8
If you have a low credit score due to a lack of credit, you can try to get a small personal loan from your bank or credit union. Be sure to repay the loan on time each month until it is satisfied. Secured credit cards that report activity to the credit bureaus may also be an option for strengthening your credit history and raising your score.
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