How to Improve your Credit Score
If you are suffering with bad credit there are things that you can do to
improve
your credit score. You may then wonder how to improve your credit score. Here
we will show you some helpful tips for how to improve your credit score.
How to Improve your
Credit Score
1. You will need to get a copy of your credit reports as you are not
able to improve your credit score without knowing what it is that you need to
work on. Your credit report will include a list of the accounts that are damaging
your credit score. You should review the accounts that need to be improved.
2. If your credit report contains any errors then you should dispute
these errors so that they are removed. You will need to write to the credit bureau
or the creditor that has listed the account on your credit report and ask them
to remove the error. Errors are able to severely damage your credit score so
they should always be questioned.
3. You need to avoid using your
credit card to make new purchases as this will raise your credit utilization
that is the ratio between your credit card balances and the credit limit you
have. The higher that your balances are then the more your credit score will be
effected. You need to reduce the credit card balance as this will improve your
credit score.
4. Your credit score is made up from 35% of your payment history. Your credit
score is then hurt when you are behind on your payments. If you are able to,
you need to pay off these past due balances.
5. You should avoid making new applications for credit as even credit
enquiries are able to hurt your credit score. Also opening a new credit account
will lower your average credit age which will also damage your credit score.
6. You will be tempted to close the credit card accounts but before you do
this you need to make sure that this will not negatively affect credit. The accounts
that balance on should be left open and these will need to be paid off.
7. You should contact your credit card issuer to improve your credit
score as they are able to help you. There are credit card issuers that have
temporary hardship programs that will reduce the monthly payments until you are
able to get back on your feet.
8. 30% of your credit score is the amount of your debt. Your credit
situation will only improve once you start paying off your debts. You can opt
in selling off some of your items if you do not have the money on hand.
9. There are help aids out there to help you to improve your credit
score like the credit counselling agencies. Getting professional help can aid
in prioritizing what needs to be done and how it can be.
10. When you are on the road to improve your credit score you will need
to be patient as it will take time to improve it.
It is then possible to improve your credit score but it will take time
to do so.
SureSwipe is a
South African credit provider for merchants that offer free reporting for
transactions processed each day.
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