Practical Ways to Improve Your Credit Score


People looking to buy a home or get approved for business credit often need help improving their credit scores. They think that just paying off their bills every month is enough, but sometimes, these good habits can still leave them in the fair section of their credit score. This limits their buying power, offers them worse interest rates, and can sometimes disqualify them altogether. You may think that improving your credit score is an impossible task, but you have more power than you think. Here are the simplest and most practical ways you can boost your credit score.  

Get a Loan

If you have low credit scores because you don’t have much of credit history, then the easiest way for you to boost your credit score is to get some debt. It sounds counterproductive but local companies can often help. New Mexico installment loans for instance may have different interest rates and terms than Texas installment loans, but they are a powerful tool to getting a good credit score. The key here is to pay at least the minimum balance on time each month and pay off the loan by the deadline.

Improve Your Debt-to-Income Ratio

The way to do this is to either suddenly start making more money or to reduce your debt load. This is where paying off debt is very important. If you have 15 open credit cards that each have a balance on them, it’s probably time to start making a debt payoff plan. This starts with listing your debts, creating a monthly budget, and tackling your debts one-by-one. Keep paying the minimum on all of them but make extra payments one at a time until that one is gone. You can then roll that money onto the next debt, until you have all of them paid off.

Have Bad Debts Removed From your Credit Report

If you’ve finished paying off a bad debt, it can take a while for it to get removed from your credit report. Did you know that you can request the removal of this debt? People often employ the services of special companies who specialize in this service, but it is possible to do it yourself. You often need to provide proof that the debt was paid off and request the removal in writing. Once the bad debt gets removed from your credit report, it should positively impact your credit score.

Check Your Credit Report for Errors

Did you know that some credit scores are bad not because of your bad habits, but because your credit report contains errors? The top 3 credit reporting agencies all have their own process, but it’s important to get a full credit report each year so that you can check for errors that may be affecting your overall credit score. Some of these errors include bills that don’t show as paid off, accounts that have been closed for years, but show open, and even accounts you never opened. Checking your credit report can not only help your credit score, it can also protect you from identity theft.

Pay Your Bills on Time

When you’re trying to build your credit, the simplest thing to do is to pay your bills on time. By doing this, you show the credit reporting agencies that you are reliable and will make good on your debts. This easy habit helps you build credit over time, and is something that everyone can do.

Add Utility Bills to Your Credit Report

Want to really get a boost? You can ask Experian and the other credit reporting agencies to add these monthly bills to your credit report. Basically, you’ll get bonus points for doing what you’re already doing, which is to pay your bills on time.

Get Help From a Credit Repair Company

Aside from helping you remove bad debts, credit repair companies can also assist you in making the right decisions that will boost your credit score quickly. While it’s simple enough to correct some errors on your credit report, these companies know how to fight on your behalf to ensure everything is reported accurately. Credit repair companies also help you make financial decisions that will give you a better credit score in the long