Thursday, September 26, 2013, AM | Leave Comment
Whether you think about it or not, your financial history is all compiled into your credit report. The information in your credit report is then used to calculate your credit score, a number lenders use to determine whether or not you can get approved for loans and at what rate. For this reason, having a good credit report is extremely important.
If your credit score is lower than it should be, here are four steps to improve it.
Check for Errors
The first and most important step you need to take when improving your credit score is to check your reports for errors and misinformation.
Incorrect information can easily pull down your score unfairly.
You can access your reports and look for information yourself, or you can hire a professional credit repair company, such as Lexington Law to do it for you. Take a minute to read real reviews by Lexington Law clients and you will see how invaluable their services can be.
Pay Your Bills on Time
Secondly, make sure you always pay your bills on time. Not only will this affect you in the short run by saving you from fees and penalties such as interest rate hikes, but it will also improve your credit score over time.
If you consistently forget to pay your bills, you may want to schedule reminders for yourself or sign up to have your payments auto-debited out of your bank account so you cannot forget to make them.
Reduce Your Debt
Next, take steps to reduce the amount of debt you owe creditors.
While this will generally take a while, there are several steps you can take immediately to begin the process.
Pick up a few extra shifts to make some extra cash. Sell your old, unused clothes and collectibles on Ebay.
Find a babysitting or pet sitting job, write a few online articles or donate plasma.
You are only limited by your creativity and your drive.
Seek Help to Make Ends Meet
If you are having a truly difficult time making ends meet, you may want to seek help from a credit consolidation company or other financial service that can help you. While these companies will look at your credit report, using them will not affect your credit score negatively.
The steps they will help you take will not only improve your credit score but will improve your general financial situation as well.
Improving your credit may take some time, so be sure to get started right away!