Improving Your Credit Score

If you are struggling with debt or can’t get approved for a loan, credit card, etc., then this is the post for you. 

I know what it feels like to get denied by credit card companies and loan companies. When I would look at my credit score it seemed like it was stuck in the low 500s. Let me tell you it wasn’t a good feeling. I often felt like I was never going to get approved. Then I started learning and researching new ways to improve my credit score. Now my credit score is way higher and now I am a homeowner. For all of you out there struggling with your credit score, let me tell you there is light at the end of the tunnel! I promise you with the tips I am going to tell you and your patience, your credit score will improve!

Here are the tips that I have for you:

  • If you have a smart phone then you should download an app that shows your credit score and credit report. You can also visit their websites. Some of the companies I reccomend is Credit Karma, Credit Sesame, and Annual Credit Report. These sites are free and all three are great. The reason why I reccomend looking at your credit report is because it makes you more aware of the accounts that you have, your credit utilization, and if you have any accounts in collections. 
  • If you have any accounts in collections then start paying them off. It’s never a good feeling to have accounts in bad standing and getting sent to collections. Start by paying off the low amounts first and then the larger ammounts. Also, pay off the non medical bills first and then the medical bills. If you don’t make enough money to pay off the accounts in collections then I would suggest calling the collection agency and setting up a payment plan. They usually will work with you, if you show interest in wanting to pay off the debt that you owe. 
  • Lower your credit utilization. You want your credit utilization to be 30 percent or lower. Do this by paying double the minimum payment on your credit cards or loans. 
  • If you don’t have any credit or have bad credit, and your credit utilization is low then you can go to your local bank and see if they have a credit rebuild program to increase your credit score and build credit. A lot of banks have credit rebuild programs.
  • If you have no credit then you can start building credit by getting a low limit credit card. Once you are approved then make a small purchase on your credit card and then pay it off before your bill’s due date. Do this once a month for 6 months and then ask the credit card company for a credit limit increase. Most credit cards will increase your credit limit after 6 months, if you show that you can make your payments on time. Then check your credit score and see if it has gone up. Then do it again for 6 months. 
  • Be patient! Your credit score is not going to dramatically increase overnight. Like a lot of things, it’s going to take time and hard work.

These tips are just some that have really helped me with my credit score. It’s going to take a lot of hard work, but it’s definitely worth it. If you use these tips, I can guarantee you that your credit score will improve. I encourage you all to start applying these tips today!

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