Increase Your Credit Score | Keys To Rebuilding Your Credit
Do you need to increase your credit score? Read about the 5 keys that will unlock your way to rebuild your credit and increase your credit score.
How To Increase Your Credit Score
Sometimes we can get in over our heads and get stuck in debt or some sort of financial trouble. You may rack up so much debt, perhaps during the holidays, that you don’t even notice it. Then it becomes a burden to make payments and you seem to be making only interest payments and nothing to the principal.
There is good news to the story because there are things that consumers like you can do to achieve stellar credit in no time. We will look at the techniques that you can use to rebuild your credit and increase your credit score.
Your credit score consists of your payment history, whatever loans you have outstanding, and your credit worthiness all bundled together in a three-digit number. This score can help pave the way to obtaining financing with easy. The big three credit reporting agencies which are for-profit based companies are: Equifax, Experian, and TransUnion. Now that you fully understand how the credit reporting system works, we’ll go into detail on how to increase your credit score.
1. Put down more than the minimum amount on your monthly bill.
Chances are that you are in credit card debt because most Americans are right now. The best thing you can do is to pay down a little more than the minimum amount suggested by the credit card company. This way it will take you less time to finish paying off the card. By having a lower debt on your credit cards, this will increase your credit score over time. It shows lenders that you are responsible in paying down debt and being financially responsible.
2. Work out a payment plan
You need to eventually pay off that debt. The more you ignore it, the less it will go away. Sit down and painfully create a plan to pay it off. It will be painful, but probably more painful to try and pay it off. You need to tough it out and pay off your credit cards so you can increase your credit score.
3. Use a debit card instead of credit
One way to achieve this is to stop using credit cards altogether. This will make it easier to track how much you are spending. An even better idea is to only use cash and then you can see how much you are spending. You will be amazed on how much you actually will spend throughout the month and how much you can save if you just switch to cash.
4. Don’t use store cards as well
Since you are cutting out credit cards, you might as well cut out store cards as well. You’re only going to buy things that you don’t need at department stores anyway, so just take that out of the mix. This can help increase your credit score if you decrease the amount of debt you have in your credit.
5. Check your credit report at least 3 times a year
You are allowed to check your credit report for free at least once a year from each of the three credit agencies. Split it up during the whole year evenly so that you can check it at regular intervals.