You don’t need a new years resolution to tell you when it’s a good time to start looking after your credit score. Credit is one of the biggest bugbear’s for most people because effectively it means that the computer is telling the world that you can’t afford something even when your income tells you that you can. Having a poor credit score from three years ago can really impact you now even if your life is completely different to the way that it was.
While there are websites out there like Compare Credit to help you to figure out how much you can afford and where you can get your credit score from, it’s important to know that this number is going to affect everything that you do from buying a home to getting an education. Working on improving your score is not a bad thing, in fact is something that you should be doing day to day. Improving your score isn’t something that you can do by sending it off to somebody, paying them and they will fix it for you. Unfortunately the world doesn’t work that way! Below, however, we have four ways that you can improve your credit rating and hopefully get out of the hole of debt.
Don’t apply for multiple credit cards. It’s tempting, believe me we know that it’s tempting, but it’s a bad idea. If you apply for a card and you get told so don’t do it again. Applying for multiple cards can actually have a negative affect on your credit for. For every card you apply for, and every footprint on your credit file, you will lose points and this is going to reflect negatively later on.
Limit how many cards you can have. Banks will always offer credit cards to consumers or provide them with the option to increase the purchase limit – but try to avoid it. It’s not actually a good idea to have multiple lines of debt, and if you do, you might find that they are not a big fan of that. Make sure that you limit how many cards you have and you will be able to manage your score better.
Keep paying your bills on time. Of course, life gets busy and often the last thing that you would think about doing is paying the bills on time. However, defaulting or late payment can really impact your score. Paying your bills on time with a calendar to help will insure that you are keeping up with how much you have to pay and your credit won’t be affected because you won’t be missing any payments.
Read through your credit report. How can you repair your score if you don’t know what your report says? There could be errors on your score that may be out of your control such as identity fraud. Obtain this score from Equifax or other lending sites and you’ll be able to see what’s there and what shouldn’t be that can be resolved.