Credit issues can hold people back in life in so many different ways. It’s up to you to consider the various ways in which you can improve your credit situation. But when you have no idea where to start, that can be pretty tough.
To help you get a better idea of how you might solve your credit issues and improve your credit score moving forward, we’ve put together this helpful guide. Each of the ideas we’re about to discuss will help you to get past your credit problems.
Make Sure Your Bills Are Always Paid on Time
The first thing you need to try and get right is making sure your bills are always paid on time. This is something that credit rating agencies always take into account because it’s something that creditors understandably care about. So do what you can to make sure that your bills are paid on time and in full. It might sound like a very simple and obvious thing to say, but lots of people aren’t on top of these things and it damages their credit score.
Try to Pay Off Credit Card Balances Each Month
The amount of your available credit you’re using will say a lot about how healthy your credit score looks. Again, this is something that credit rating agencies pay very close attention to, and you can’t afford to overlook it. It’s in your best interests to make sure that you’re paying off your credit card balances in full each month. If that’s something that’s not happening, you’re going to end up damaging your credit score.
Or Strive for 30% Utilization or Less
If you’re not able to pay off your balances in full each month, you should be at least aiming to keep your credit utilization below the 30% level. If you can do that, it’ll satisfy most credit rating agencies. They simply want to see that you’re not continually maxing out the amount of credit you have available to you because we all know that’s not a healthy position to be in.
Don’t Lumber Yourself with More Debt and High Interest Credit
One thing you can’t afford to do if you’re trying to improve a bad credit situation is lumber yourself with more debt and high internet credit. Of course there are options out there for healthy credit such as mortgages. In that case, bad credit mortgages are something you might want to look into. What you don’t want to do is lumber yourself with loans and credit card debt. Instead, aim to live within your means.
Consider Debt Consolidation
If one of your problems is that you’re not able to keep control of your debts because you have lots of them, you should consider consolidating them. Debt consolidation can work really well for lots of people because it allows them to roll their sprawling debts into something more manageable. It means that you only have one debt to keep track of and make payments for, and that in itself is good for your credit score. It’s something to at least consider.
Avoid Too Many Credit Applications
Even if they’re not granted, applying for extra credit is something that can damage your credit rating if you’re not careful. You should do what you can to manage your finances in a way that means you’re not always having to look for new sources of funding and new types of credit. That’s exactly the kind of unhealthy credit cycle that you should be trying to get yourself out of if you can. Ideally, you should put a complete ban on further credit applications until the situation is improved.
Try a Credit Monitoring Service
Finally, you should think about making use of a credit monitoring service. When you do this, you’ll find that your credit score massively improves over time because you have real professionals keeping an eye on it for you and offering you the insights and advice you need in real time. So definitely be sure to make the most of this if you feel it would benefit you. Lots of people already use these services and understand precisely how useful they can be.
As you can see, there are lots of good ways to solve your bad credit situation. If you’ve been battling credit problems for a long time, the chances discussed above should allow you to start turning things around. So get to work and start implementing these ideas as soon as you can.