Build your credit score? – In a recent survey, the National Foundation for Credit counseling found that people would rather talk about how much they weigh than divulge their credit score.
Of course, most of these people have bad credit as a result of financial hardship of some kind. Yet people with good credit scores rarely talk about it either.
In fact, if you were to ask them about it, they might simply stare at you rather than boast about it.
No matter who you talk to, though, everyone understands how hard it can be to grow and maintain an excellent credit rating.
How do some people build and keep such good credit scores, then?
Well, first and foremost they’re excellent financial planners; they do not commit to financial obligations they cannot meet, and they always make their payments on time.
If you’re looking to repair your credit score after it has been damaged, or you simply want to take it from good to great you should emulate these behaviors.
Improving your credit score isn’t all that difficult, but it does require you to put your finances first (even when it’s no fun).
How to Improve Or Build Your Credit Score
Before you make any changes at all, you need to know where you currently stand. Get a copy of your credit report from a service like AnnualCreditReport.com to see what you are doing well and where you need to improve.
Be sure to check it thoroughly and challenge anything that looks incorrect through TransUnion or Equifax to make sure that your credit score is accurate and give you a good head start to build your credit score.
Consider Your Credit Card To Build Your Credit Score
Next, you should consider your credit cards and overdraft; if you have debt you should prioritise shrinking it.
Having maxed out credit cards is bad for your credit rating, so put any nearing their limit at the top of your list and try to pay more than the minimum where possible.
If possible you should move your outstanding balances to a card that has low interest. Check comparison services for cards with 0% balance transfer fees and a good interest rate.
Once your cards are under control you will notice an improvement in your credit score, but this is simply repairing the damage previously done.
What you want is to actively improve your rating.
Whatever your credit level, a secured loan is an accessible way to begin to build your credit score. Why?
Because banks don’t generally check your credit score when it comes to secured loans because you’re required to put down a lump sum as collateral anyway.
Take out a manageable amount and meet all of your payments, and you will see a real improvement in your efforts to build your credit score.
Of course, if your score is particularly low, you may have to do this a few times before your score improves enough to get a good rate on unsecured loans.
Nonetheless, this is one of the best ways to quickly improve bad credit.
Finally, get into the habit of checking your credit report regularly as this will show you what progress you have made as well as how far you have to go.
If you implement these tips and meet all of your financial obligations consistently you will soon have a credit score to be proud of!