Credit Tips: Simple Steps to a Bold New You
Credit is a complicated topic, but one thing it doesn't have to be is difficult. If you're looking for ways to repair your credit score, there are a few simple steps you can start taking today that will have you well on your way to a bold new you.
Check That Credit Score Regularly
Everyone knows that you can get a free copy of your credit report once a year, but how many people take advantage of it? Getting into the habit of pulling your credit report as often as you can isn't simply motivation in that you get to see how far you have come, but you also have the opportunity to check for any errors that may be harming your score. Always verify the amounts listed for open accounts and make sure they're correct. If they're not, dispute them as soon as you can.
Think Of Your Credit Card Like a Debit Card
Many people don't realize that you're not limited to making a payment on most credit cards once a month. You can typically pay once a day unless the terms and conditions of your agreement specify otherwise. If this is an option available to you, you should take advantage of it. Start thinking of your credit card as a debit card - only spend what you have in cash and submit a payment as soon as you can.
This will not only get you in the habit of paying your bills on time, but the increased activity will help your credit score, AND if you pay your balance in full as you accrue it, you won't get hit with interest charges, either.
Spread the Love
If you have multiple credit cards, don't rely on one too heavily. Generally speaking, it's good to keep your debt utilization at between 20% and 30% - both regarding your overall credit and on specific cards. Even though there's not technically a difference of money you owe at a given time, spreading out charges among several cards and keeping debt utilization on any one as low as possible can still give a short-term boost to your scores.