5 Easy Tips to Repairing Your Credit Score
Monitor Your Credit Report
The first step in repairing your credit score is to monitor your credit report for any inaccuracies. If there are any mistakes, take the time to dispute them. By doing this, you’ll be taking a proactive step in repairing your score. Additionally, make sure to review all of your reports annually and update old accounts, if necessary.
Pay Your Bills on Time
A common misconception is that paying your bills late will only hurt your score. That is not true. Late payments will have a long-term negative impact on your credit score. Payment history is the most important factor when it comes to your score, so it’s important to prioritize your payments and make them on time. This will help improve your score over time.
Reduce Your Credit Card Utilization
Your credit card utilization is the ratio of your total credit card debt versus your available credit. Ideally, you should keep your utilization rate under 30%. Reducing your utilization rate will help boost your score quickly. Paying off balances can also help to improve your score.
Keep Older Accounts Open
Don’t be quick to close any older accounts. The length of your credit history is also a factor in your credit score, so it’s beneficial to keep older, unused accounts open. If you close them, your credit score could take a hit.
Don’t Open Too Many Credit Lines
Opening multiple lines of credit in a short period of time can hurt your score. This may seem counterintuitive, but it is actually considered risky behavior. The more credit applications you make, the more inquiries will show up on your credit report. So be mindful when applying for any new lines of credit.
Repairing your credit score can be a tedious task, but with a little planning and persistence, you can have it looking better in no time. The five tips mentioned above can help you repair your score quickly and effectively.
