Improving your credit score is pretty easy to do if you follow the steps listed below.
Lower your outstanding balances
Did you know that you could pay all of your bills on time and your credit score could still not be as high as it should be? Paying only the minimum balance on your loans will allow you to build good credit but it will keep you from reaching the outstanding category. If you want to improve your credit score then you need to start paying down your loan balances right away. You should seek to send in more than the minimum amount due every single month. This will give you more available credit and get you out of debt faster. The credit bureaus will view you as a more favorable credit risk and increase your score.
Start building some positive credit
You may not be able to erase your old bad credit immediately but you can start building some good credit right away. There are a number of avenues that you can take to boost your credit score. You can start by using secured loans and secured credit cards to improve your score. There are also personal loans with bad credit for individuals that are trying to rebuild their credit. The best part is that these financial products are open to everyone and offer a second chance.
Keep those old accounts open
One of the biggest mistakes that cardholders make is closing down an account as soon as they have managed to pay it off. This is a big no-no because it does not help your credit score. As a matter of fact, it hurts your score. You should keep your old accounts open regardless of if you pay off the balance or not. Old established accounts have the biggest impact on your credit score. You should be sure to use an old credit account once a year to avoid the account being closed due to inactivity. Your credit score will jump if you keep the balance paid off while keeping the credit limit high.