Escaping credit scores in America is literally impossible. You need a credit score for anything. Whether it’s purchasing a phone or signing up for a new phone plan, purchasing a car, or purchasing a home, Americans NEED a good credit score. If you don’t have a good credit score, we can probably guarantee you’ll be paying a lot of upfront costs. Credit scores can be the death of us, but they also unlock huge opportunities. If you are suffering from a low credit score, we have put together a blog on how to improve your credit score in 7 simple tips.
1. Start paying off your debt
We understand that mistakes happen which affect your credit score. It’s what you do to fix them that counts. Start organizing your repayments and get going! If you are paying back small amounts consistently every month, your credit will begin to improve.
2. Eliminate credit card balances
Charging numerous credit cards with small balances can actually hurt your credit score. We call them nuisance balances because many people look over these as the amount owing is so small. It’s imperative that you pay off these small balances and focus your attention to one or two credit cards.
3. Pay your bills on time
This is an obvious one but one of the most important steps in improving your credit score. Paying your bills on time is just a non-negotiable. Start using a calendar, set up alerts on your phone, do whatever it takes to pay your bills on time. Trust us.
4. Be FOCUSED
BE FOCUSED!! Building up your credit score takes planning, organization, patience, and most of all – FOCUS! We know you may want that bag from Neiman Marcus, and we know you want to put it on the credit card. Don’t do it! When you have a big purchase coming up, whether it’s a house or a car, don’t spend. Consistently repay.
5. Put yourself in their shoes
Imagine if you were approving yourself for a purchase. Would you trust someone that frequently spends too much? Would you trust someone that has a larger purchase to repayment ratio? We doubt it. Put yourself in their shoes. What would you want to see? Consistent repayments and responsible spending
6. Be Consistent
Just like anything in life, consistency is key. If you are interested in how to improve your credit score, this is one of the biggest things to takeaway. It takes TIME to build your score back up so be patient, it’s worth it.
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