A good credit score can go a long way. But what can you do if you have a bad credit score? If you are ready to take charge of your life, there are some things you can do to improve your score.
- Pay your Bills on Time – This one may seem obvious but it is so important. Missing your payments by just a day can affect your credit score for up to seven years.
- Dispute any Errors on your Credit Report – Sometimes you’ll find errors made on your credit report and that is when you have every right to call and dispute those errors. Those errors can affect your score and can be resolved by a simple action from you. The creditors have 30 days to investigate and respond.
- Become an Authorized User – If you have a friend or family member that has good credit habits, ask if you can be an authorized user on their card. For your friend’s peace of mind, they do not even have to give you the card or the account number. But every time they pay on their card it can improve your score as well.
- Pay Off your Credit Card Balances – Paying off your balances will help reduce your utilization ratio and improve your credit score.
- Leave Accounts Open – When you have accounts with unpaid debts, you might be tempted to close them. However, by keeping them open and continuing to pay them off you will be able to increase your score.
- Contact your Creditors – Although this may seem scary, by talking to your creditors about your situation, they might be able to help you. Oftentimes, creditors can reduce your monthly payments or interest and help you be able to pay off your debts. But remember, when talking to them you definitely catch more flies with honey.
- Seek Professional Help – When all else fails or if your debt might be too much to figure out alone, go get help. There are financial advisors, attorneys, and more for a reason.
- File bankruptcy – Many times, those who have low credit scores are surprised to learn that their scores go up significantly after they file bankruptcy and have their debts discharged.
Do not let a bad credit score keep you down for long. Take charge of your future and do what it takes to improve!
Disclaimer: Each business and/or individual situation is different and unique. This article is intended to provide you with general advice only and not to be construed as legal advice. If you would like a detailed approach to your particular situation, please contact David J. Winterton & Associates for a consultation to discuss your options.