I have a confession to make. I once thought that I could improve my credit score overnight. I figured that once I paid off a couple of bills, boom, my credit score would magically increase.
Boy, was I wrong! The truth is that most creditors only report the the credit bureaus once per month. If you have been thinking like I used to, don't lose hope. There are steps that you can take to start cleaning up your credit. Here they are:
Always Pay On Time
Paying your bills on time is extremely important. Late payments can have a serious impact on your score.
Limit Your Credit Applications
Do not apply for credit frequently. Having a large number of inquiries on your credit report can make your score worse. The reason for this is because it looks like you are being turned down for credit. In all actuality, you may just be shopping around.
Lower Those Balances
Start reducing your credit balances. Maxed out credit cards will have a negative affect on your credit score.
Pay Off Debt
I know this may sound pretty basic, but some people need to understand this. Pay off any debit that you have the ability to pay. If paying it off completely is not an option, then try to set up a payment plan or some other type of arrangement with the debtor.
Obtain Additional Credit
Getting more credit can actually improve your credit score. You don't have to go crazy and start charging every purchase you make. Get a low-credit card and use it a little every month. Then, pay off the balance within thirty days.
Pay Your Mortgage On Time
I understand that not everyone has a mortgage. If you do, be sure to always pay it on time. Late mortgage payments have proven to be significant blemishes on a person's credit report.
You Can Turn Things Around
Even though your current credit score may not be where you can it, you can make improvements. Don't expect miracles to happen over night. However, if you start following the advice listed above, you credit score will be on the rise before you know it.