If you, like many other people, have exercised the “young and dumb” expression when discussing your finances, you may have a less than desirable credit score. If you do, it is a true pain in the neck to improve it. However, it is possible. What you need to understand is that there is no overnight fix for a credit score. It is something that takes time. Learning to manage your finances can be a difficult process, but, in the end, it is well worth the effort. It is the first step you need to take to begin improving your credit score.
Once you have a handle on personal finance management, take a look at your credit report. Knowing what your score is, what accounts you have open, what is negatively affecting your score, and what the amounts you have delinquent are can be a crucial piece to your financial puzzle. Be sure that if you find errors on your report, you bring them up with your creditors. One thing that may help you manage your finances is automatic payment reminders. Many creditors have a system that will inform you, by email or text message, that your bill is coming up and how much it is. This is a great way to stay on top of your bills.
Payment history makes up a large percentage of your overall credit score. Obviously, you can’t go back in time and fix these issues, but you can get current and stay current on your bills. Your credit score will improve drastically, over time, by making all bill payments on time. Also, if you look at your report, you may find that you have collection accounts. These are definitely negatively impacting your score. Paying them off is a good thing; however, it is not a quick fix. Collection accounts stay on your report for seven years. You may be having some trouble keeping up with your bills as it is, let alone paying off old ones. In this case, talk to a credit agency. Often a credit repair company’s Facebook page can be a great place to get crucial initial information.
If you have new credit, there are ways to improve your score that will require determination, self-control, and proper financial management. Opening new accounts can be useful if you do it responsibly. As long as you make payments on time, and don’t reach your credit limit on these accounts, they will improve your score over time. However, don’t open new accounts just to have them, or to improve your credit. Ensure it is something you need, like a car. This will raise your chances of paying on time each month. Also, ensure that any credit cards are managed responsibly. Just be careful not to let your new account backfire on you.
These are a few great tips on improving a poor or new credit score. Remember, though, that it will take time to see the improvement. We all know that your credit score is important. It is what you need to buy a house, get a car at a decent rate, avoid pesky security deposits, and even rent a house or apartment.
Obviously, a car and a place to live are general requirements of an adult life, so be responsible, learn to manage your credit, and be patient. Take control of your finances; don’t let them take control of you. As we have all heard, patience is a virtue. Well, when it comes to credit, it is a necessity.
