Having a good credit score is important for a number of reasons. It will impact everything from getting a loan to your auto insurance rates. The number one thing you can do is to improve your credit score is to first take a look at it and ensure that everything is correct. To do this, you will need to look at your credit report. Another way is to use a credit card responsibly and pay bills in a timely manner. Lets take a closer look.
Set Up Payment Reminders
Another way to fix your credit is to make sure you are making payments on time for each loan and utility bill that you have. To do this, you can use an app on your smartphone to set payment reminders. Ideally, you’ll want to set them a week in advance to ensure you have time to gather the funds to pay the bills on time.
Pay Off Credit Cards
Improving your credit score also starts with lowering any debt you may have. Doing something as simple as doubling your minimum payment on credit cards is an excellent way to reduce what you owe and get them paid off quickly. For example, if you have a minimum payment of $30 on three cards, you could pay $60 a month on each of them and this will improve your credit score quickly.
Contact Collection Accounts
Most times, any time a bill has been placed with a collection account, it will not be removed from your credit for at least seven years after you have paid it off. You can, however, contact the collection account and ask them to report that the debt has been paid in full. This will look much better on your credit report, especially when you apply for a loan.
Speaking with a loan officer at a local credit union is a great way to get expert advice on fixing your credit.