The first step in improving your credit score is making the commitment to do it. An important thing to realize is that it will take some patience to improve your credit score. Just remember, your credit score didn’t get that way overnight and fixing it will take a little time. The fact that you are taking the initiative to repair your credit is fantastic. Of course, you should pay off your debts and limit credit applications, but we also have other ways to help. Below are three practical ways to improve your credit score and elevate your mood.
Having multiple credit cards with small balances can actually hurt your credit score. Don’t add on to your credit report with multiple balances when you do not have to. John Ulzheimer, a credible credit expert from FICO and Equifax, told Bankrate® that the solution to improving your credit score is to gather up all of your credit cards with small balances and pay them off. This strategy can boost your score because your score considers how many of your cards have balances.
Get organized with your payments. If you are currently behind on your payments, you can call the issuer or loan holder to ask them to forgive your lateness. An easier way to get organized is to set up recurring payments through your debit card. When it is time to pay the loan holder or card issuer they will take it from your card, and you won’t have to worry about being late.
MoneyRates.com shares that keeping your credit card balance low is right for your credit utilization ratio. “The percentage of credit you use compared to the amount you have available to you counts for almost one third of your credit score. Maxing out credit cards or spending close to the credit limits makes you look risky to lenders. Financial experts advise keeping credit card balances below 30 percent of your credit limits, even if you pay off your accounts in full each month.”