Your credit score is a reflection of how creditworthy you are. Many people don’t give a thought to their credit score and when they decide that they wish to purchase a car or a home, they find that their credit is sub-par.
Know Your Credit Score
If you’re considering such a purchase, the first tip is to stay on top of your credit score and know what it is. You can’t fix your credit score or boost it if you don’t know what it is.
Check your credit score frequently and make sure that you deal with any outstanding bills or other issues that may be affecting your credit.
Pay Bills On Time
This cannot be stressed enough. It’s important to pay your bills on time. If for any reason, you can’t pay a bill on time, ask for an extension and pay it as soon as possible.
If you’re struggling to pay your monthly obligations on time you may need to take a temporary second job until you can pay them on time.
Deal With Negative Marks
If you have anything negative on your credit report, be sure that you deal with it as soon as you possibly can. Perhaps it’s an old bill, perhaps it’s something you don’t owe.
If you don’t owe it, file a dispute and make notes regarding this bill. If you do owe it, make arrangements to pay it as soon as possible so that you can get it out of the negative column.
Live Beneath Your Means
It’s easy to overextend yourself and pay more than you can comfortably pay. Don’t try to keep up with the Jones’, they’re in debt and you just don’t know about it.
Instead, live beneath your means. learn to make do with what you’ve got and spent less money than you earn.
Pay Yourself First
It’s easy to pay your bills the day you get your paycheck. You pay everything, then, you realize, you don’t have any “fun” money or “savings”.
Instead, take out ten percent of your income and pay yourself first. Put a portion into savings and set a small amount aside for “fun” money. This is exactly how the wealthy do it and if you want to get out of debt, pay yourself first.
It may seem ridiculous, but it’s how it should be done and those that have this one trait find that they are able to pay their other bills even though they do this.
These 5 secrets will go far in helping you to boost your credit score. If you’re stressing over your credit score, let go of something and consider other ways to pay down your debt.
Paying down debt is actually fun once you get going on it. You’ll have fun watching your score go up and working on paying your debts off. Even paying just $100 per month toward your debt can go far in helping you to raise that credit score. This will greatly improve your chances for a loan.