A low credit score can really hurt you. Not only will it be harder to get credit cards and loans, but when you are able to borrow money, you may find you’re unable to get the best rates. If your credit score is low, taking steps now to raise it can improve your financial outlook in the long term. Here are five things that can have a big impact on your score.
- If you haven’t yet done so, check your credit report. You can order a free credit report once per year from each of the three major credit bureaus. Know your score and check for errors in the report.
- Pay down your debt. This is easier said than done, we know, but keeping your balance lower than 30% of your available credit will boost your score.
- Don’t close your accounts. A card with a zero balance helps that available credit number we talked about in #2. Don’t use the card, but keep the account open.
- Do not miss payments. Always pay at least the minimum amount due on time. Not only will you avoid late fees, but late payments will knock your credit score down fast. If you can afford to, pay more than the minimum so that you can see your balance decrease more rapidly.
- If you’ve paid off all debt, don’t avoid your cards completely. Using them regularly and paying off your balances each month will help your score because you’ll show regular payments and responsible borrowing. Not using credit won’t help your score. Using it wisely will.
There’s no quick fix to repair bad credit. However, you can improve your score over time by taking these important steps. If you’re ready for a new car but your credit is keeping you from getting approved, CreditYes can help with our bad credit auto loan program! We can match you with a dealership in your area that will be with you ever step of the way. Our service is fast and free. Fill out our secure online application and get behind the wheel of your next car today!