Financial mistakes do happen, especially if you haven’t been educated to understand how your actions influence your credit profile. However, this doesn’t have to be a lifelong situation. There are things you can start doing today to help improve your credit rating, which can lead you to lead a more satisfying life. By following these tips, you can start boosting your credit score in very little time.
Take a Personal Finance Course
Some people are more interested in how economics influences their daily lives. If this sounds like you, taking a personal finance course or other courses related to the financial industry may be a good place to start. If you can qualify for a scholarship, such as that which is offered by Robert Tweed, you might be able to further your education without contributing to your debt. Gaining a deeper understanding of economics and finance can help you live a happier life and may help you pursue dreams you previously thought were unattainable.
Review Your Credit Reports
There are three credit reporting bureaus (Equifax, Experian, and TransUnion), so it’s a good idea to order a credit report from all three agencies. Once you have them, compare them for discrepancies or for mistakes that may appear on all three reports. Most people don’t bother to do this, because they doubt it can make a difference. In truth, errors do happen and finding them is important. Correcting just one error can have a significant impact on your credit score. Additionally, this is the best way to determine if you have been a victim of identity fraud.
Pay Off Your Past Debts
The next step you should take is to catch up on past due or delinquent debts. The best method is to tackle one debt at a time, while maintaining minimum payments on the others. As you pay off one debt, move on to the next one and continue working away at your debts until you have caught up on everything you owe. As you begin clearing up these debts, your efforts to catch up will have a positive effect on your overall credit score.
Pay on Time
It’s equally important to make timely payments on your existing debts as well. Just one late payment can result in a negative hit on your credit score, which will counteract your efforts to boost your score. You may find it helpful to set up alerts on your electronic calendar or to ask your creditors about receiving alerts via text message about upcoming payment due dates. Advance notices can help you plan ahead for these payments, so you won’t be caught off guard.
Apply for a Secured Credit Card
If your credit score is especially low, you may find it impossible to get credit of any kind. This is because your credit report indicates that you’re a high risk and that you don’t repay your debts on time. The best way to fix this problem and prove that you’re taking your finances more seriously is to obtain a secured credit card. This is a credit card linked to a checking account. Basically, you’re providing collateral for the card by keeping a predetermined amount in the checking account. For instance, if you deposit $200 into the checking account, you may be approved for a $200 credit limit. This will help you rebuild a more positive credit rating.
Depending on how committed you are to improving your credit score, you may be able to do it in as little as six to eight months. It requires being diligent and taking action to ensure you continuously meet your financial obligations. It may not be easy, but, if you stay dedicated, it may not be long before you have a more positive credit profile.