Improve Your Credit Score in 3 Easy Steps!

Even if you have to take out a loan with poor credit, sometimes referred to as a sub-prime loan, it doesn’t mean you will always remain a sub-prime borrower. The more you can do to increase your credit score (FICO score) the better your chances will be of applying for a low interest loan in the future and obtaining it! By following the tips below you may be able to increase your credit score over time and build a credit history for the next time you need a loan. 

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Tips for Improving Credit Score

1)  Improve on Your Payment History 

Past due bills can be a killer when it comes to credit reports. Applying for a loan online or in any bank branch can be tarnished by having past due bills. Try to pay any past due bills and attempt to stay current with any future bill payments. If you cannot get current with some creditors it could be helpful to contact them directly to establish a different payment plan or determine another way to keep your credit score from being affected. Once your credit score is impacted it's tougher to reverse the affects.

2) Minimize Debt

Many of us are guilty of raking up credit card balances, especially around holidays. However, the closer your balance gets to your credit limit the more your credit score could be affected. If you can pay off balances on credit cards or other lines of credit even better. A low or zero balance can be a great way to improve your credit score. If you reach a zero balance on a credit card it may even be a good idea to keep the account open to show credit reporting agencies you have brought the balance down to nothing – a very positive sign! 

3) Watch Your Credit Score History

Opening multiple accounts with a short amount of time can look bad on a credit report. This raises questions as to your need for credit and to how much credit you have open with different lenders or credit card companies. Applying for sub-prime credit cards, or even prime credit cards, within a short amount of time can hurt your FICO score. Also watch the types of loans you have open. The more installment loans you have open the more risk the lender will see when considering your personal loan application, credit score or mortgage application. 

Take Control of Your Credit Score the Easy Way!