At SM Law Group, we see a lot of people struggling with bad credit. They are not sure how they got to this point, and it is even harder to gauge the best way to improve that credit score from where it is now. First of all, stressing over the score constantly will not help it improve. Next, try these three tips to give your credit score a small boost over time.
Pay Bills On Time
Failing to pay bills on time is one of the biggest hits your credit score takes. Therefore, if you have high balances on cards, be sure to get that payment in before the due date. This also avoids the late payments, which are just additional fees that could have been put toward the balance of your card had you paid the bill on time.
Utility bills, when paid on time, are also helpful to boosting your credit score. Keep that in mind when it is tempting to spend that money on something fun rather than your bill. Your credit score will suffer for that fun purchase.
Leave Good (Paid) Old Debt On Report
If you have paid off a car or other balance that was owed, be proud of that feat. Do not fight to have that debt removed from your credit report. It shows you can succeed in paying off credit when it is given to you, and that is a skill that is appealing to creditors. Also, keep in mind the longer the positive history is, the better it looks to creditors. So consider keeping old accounts open when they show you were good at keeping up with payments and having them paid on time.
Keep Credit Card Balances Down
In order to increase your credit score, it is a good idea to look at ways to minimize the current level of credit being used. For the cards you have, 30% or lower is the optimum when it comes to balances on that card. Therefore, it is a smart idea to aim for this number, or a lesser percentage in order to improve that credit score.
While you are keeping those balances low, consider the fact that having multiple cards with low balances is also not an appealing trait when it is noticed by creditors. Pay off the low balances on multiple cards, then pick one or two at most to use for everything. The balance may be higher, but in the longer run having only two cards that you are using shows you are responsible and can make the payments for additional credit at this point.
These tips and more are regularly shared by the experienced staff at SM Law Group. Our lawyers are here to help you improve your lifestyle and overall satisfaction, and we recognize that things can be very depressing when you are dealing with a low credit score. Take the time to consult with us today, and you will be very happy with the changes you can see in your credit score in a very short time. We can help you set short-term goals that can have a positive impact on your credit score quickly.