Quick Wins for your Credit

The economy is in a tough spot. More people are out of work than the nation has seen in decades. Businesses are in peril, and many small shops will never open their doors again. In an effort to stimulate our economy and promote healthy movement, the US Government has lowered interest rates and incentivized home buyers to make a move.

A better credit score will give you more opportunities. If you’re thinking you’re ready to consider a move but are concerned about your credit score, consider these pieces of wisdom to help you improve your credit score.

 

Pay Bills on Time

This may sound obvious, but it's apparently not, as many people pay late. These late payments end up meaning penalties that cost money and opportunities. Even if you feel you’re drowning in debt, the discipline and structure of making on-time payments to all of your debts and bills can amount to major improvements to your credit score.

Increase Your Credit Limit

Your credit limit might have been why you got into debt in the first place. Credit card debt averages nearly $9,000 per household in the United States, and consumer debt is at nearly $13.9 Trillion! With all of this debt, why would we increase our capacity for debt? The answer is simple: The bigger the gap between your available credit and your debt, the better your credit score. So request a credit limit increase with your credit card company…and then resist the temptation to spend more.

Pay Off Collections

If you’ve been sent to a traditional collections agency for a past-due bill, it’s possible that your credit score has been impacted. While this can stay on your credit score for up to seven years, that doesn't mean that all is lost. Many creditors will look beyond your credit score to get a broader understanding of your credit history. By paying off your debts (even the “bad" debts that led to collections), you are demonstrating financial dependability. That's what lenders are looking for.

Don’t Close Out Credit Cards

Many people have fallen victim to credit card opportunities, whether to get a free smoothy cheap and free like a T-shirt when they were in college or something like 40,000 airline miles. Sometimes people view these as cards they'll just cancel after they have taken advantage of the incentive. But canceling a credit card damages your credit score. So keep your cards open—even those you shouldn't have opened. And then be sure to control the cards you have opened so that are protected.


Some of these tips can make an impact on your credit score pretty quickly. Others take time. Regardless, taking proactive steps to protect and improve your credit score can make a big difference for you and these opportunities in our economy.

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