A few years ago my credit score flat out sucked. I was in the low 500’s, and I couldn’t qualify for a $500 personal loan. I was shocked. I didn’t know it was that bad. That day I took a look in the mirror and decided to get serious about getting my credit right. By August 2015. My credit score had risen by 168 points. I was able to do that without paying for help. You can do the same thing as well. Today, I want to share with you with you five ways that you can improve your credit score.
Pay your bills on time
The first thing that you need to do is to make sure that you pay your bills on time. Your payment history is 35% of your credit score. That’s a little more than a third. When I was younger, I paid my credit cards and student loans late. That’s one of the main reasons that my credit score was so bad. As soon as I started making payments on time, it began to rise. Yours will do the same. If you’re horrible at remembering your payment due dates put them in Google calendar or use a program like Mint. Mint sends out emails when you are close to a due date.
Stop using your credit cards
If you’re serious about getting your credit score, you should stop using your credit cards for a while. Your credit utilization is 30 percent of your credit score. Credit utilization is the ratio of your credit card balances to their credit limits. As one point my credit utilization ratio was at 99%. That was horrible. I’m currently at 30% and will be lower than that by the time you’re reading this. If you still want to use credit cards, make sure that you pay the balance off each month.
Pay down debt
I don’t care what anyone says, but debt is the enemy. I don’t want it, that’s why I’m working hard to eliminate it. Paying down your debt (credit cards and revolving credit) will help your score rise. Do what you have to do to lower it. If you don’t make enough, don’t worry about it. The next tip will help you.
Make extra money to pay the debt
Find a way to make extra money so that you can apply it to the debt. Interest is not a game. That’s part of the reason my student loan debt is where it’s at now. I pretty much ignored them and made the very minimum payments to them. I don’t want that to happen to you. Adding extra money to your debt will make them a thing of the past sooner than later. Below are a few ways for you to make extra money:
Sell items on eBay
Sell something on Etsy
Create a course
Drive for Uber
Get a part time job
Become a freelancer
Do yard work for people
The final way to improve your credit score is to be smart about the situation. Check your credit score a few times each year. I like using Credit Sesame. It shows me my score. It gives me a credit and debt analysis. Did I mention that it’s free to sign up for? You can do so right here. Credit Sesame gives you tips on how to help you raise your credit.
Another way to be smart is to watch how you’re using your credit card. As I stated early, try to pay it off each month if that’s feasible for you. By doing that you won’t accrue any more debt.
As you’ve just read, those are five ways that you can improve your credit score. It took some time for the score to raise, but it did. I know that you can do the same thing. You just have to be serious about it and have some discipline.