If you are not happy with your credit score, do not just sit there feeling powerless about your financial situation. There are several key steps that you can take to begin restoring your credit.
Many people think they they are stuck with a bad credit score for life, but a few strategic moves on your part could soon have you raising your credit score systematically in order to get that loan you want, the home of your dreams, and more.
1-Pay down debt.
Plan to pay down any debt you have now.
2-Pay on time.
Be sure you always pay on time to avoid penalties, fees and further damage to your credit report.
3-Pay as soon as the bill comes.
Don’t leave it sitting around til the last minute. The sooner you pay, the less interest accruing on the balance.
4-Make an extra payment.
Even $10 extra can help you start to pay down your debt strategically and boost your credit score.
5-Obtain new credit
This is simple but very powerful. In many instances, people who don’t have good credit also do not have a credit card because they lost their privileges of owning one. Some never reapply for one because want to use cash to avoid going back into debt. But the reality is that if you ever want to apply for a loan or necessary credit, it’s important to start rebuilding your credit strategically. Just be sure not to apply too often, as the inquiry on your credit report could actually cause it to go lower.
FURTHER READING:
Tips for Paying Off Credit Card Debt
