How to Get a Good Credit Score: 5 Helpful Tips
You’ve been late a few times with your bills over the years and your rent is sometimes late—could this impact your credit score?
Sadly yes, even a few late payments can harm your credit score. All hope isn’t lost though, as there’s plenty you can do to make improvements!
Credit scores are constantly fluctuating up and down, so it’s possible to turn yours around in just a few months. Want to know how to get a good credit score?
Keep reading to find out!
1. First, Obtain Your Credit Reports
You can’t get a perfect credit score until you know what your starting point is. So, the first step is to order a copy of your credit report from each of the three main bodies: Equifax, Experian, and TransUnion.
You can do this for free via the Annual Credit Report website.
Once you have your reports, make sure everything is accurate and call the credit companies right away if you suspect any fraudulent activity has lowered your credit score.
2. Pay Your Bills On Time
To get a great credit score, you need to pay your bills on time each month. This establishes that you’re trustworthy and reliable when it comes to your finances.
Some companies let you set up auto-payments, great if you’re worried you might forget to pay on time. Otherwise, stay organized with a financial calendar, outlining all the dates when bills are due.
3. Don’t Open Lots of Credit Cards
When building credit, limit how many new credit cards you open. Each new loan or credit card application can create a short-term decrease to your credit score.
However, if your credit score isn’t the best, don’t worry—it can be repaired over time. Have a look here to find out how.
4. Make More Than the Minimum Payments
When your credit card bills arrive each month, aim to pay more than the minimum amount. Otherwise, you’re really only covering your interest charges and not paying off the actual debt.
5. Avoid Payday Loans
If you’re tight on cash, it can be tempting to apply for a payday loan. They promise fast cash, but it’s at sky-high interest rates.
If you can’t pay it off on time, it can hurt your credit score—and your pocketbook.
Learn How to Get a Good Credit Score With This Guide
This article should help you learn how to get a good credit score, even if you’re just starting out. However, do plenty of research on your own and consider talking to a financial advisor if you’re having problems with money management.
It might take some time, but with changes to your financial habits, you’re sure to see your credit score rise–ideal if you ever want to get a mortgage, buy a car, or apply for loans.
Did you find this article helpful? If so, please keep reading to find more informative content.