Whether you’re trying to buy a new home or want to get a new car, you’re going to need to have a credit score that’s not terrible. If you want the best terms on those kinds of credit accounts, you want your credit score to be in the above-average range. Unfortunately today, many folks are facing crappy credit score, often due to temporary hardships.
The good news is that, with a little bit of work, you can actually fix your crappy credit score and, within a few months’ time, be looking at a new world of possibilities in terms of the availability of credit. Here are some of the best ways to fix your crappy credit score:
- Use your credit wisely. One of the big factors in your credit score has to do with your used credit compared to your credit limits. It’s OK to use your credit, but if your credit cards are maxed out all the time it’s going to knock down your credit score. You should aim for using about 30 percent or less of your available credit.
- Don’t apply for credit unless you need it. Applying for every credit card offer around will drop your credit score, because every time there’s an inquiry into your account your score will drop.
- Pay your bills. You need to pay them on time, every time. If you have late payments or missing payments, it will turn your credit score to crap. Each month that you make all of your payments on time, your credit score will improve.
- Watch out for errors. Get a copy of your credit report and watch out for duplicate collection notes, for example. Also watch out to see that the credit card companies are correctly reporting your credit limits. If you do find any errors, dispute them right away.
- Be patient. Fixing a crappy credit score takes time. If you’re diligent about it, however, you’ll eventually see that all of your hard work will pay off with a nice, shiny new, and much higher, credit score in the long run.