Your credit score indicates your creditworthiness to potential banks, property owners, and even to some potential employers. With this in mind then, we want to keep the score as high as possible. If you have already damaged your credit score then it is time to get those numbers back up. I have a few ideas that can help you to do this.
1. There are three major credit agencies, (Experian, TransUnion, and Equifax) that will give you a free credit report each year. These agencies don't give you the actual score but do however, give you a good report of what has been recorded to your name. I would recommend using them as a start. You may want to use one of them every few months so that you can keep a close check on your credit report all year long.
2. Review your credit report very closely for any errors. If an error shows up you need to contact both the reporting agency and the creditor that reported the error. This is another good reason to keep all of your receipts of payment to any credit or loan agency. You will need to show proof of the error to have it corrected on your report. Never send anyone your original documents. A copy will work nicely and you will not have to worry about the original getting lost.
3. Pay off your credit balance or at least get them paid down. Big balances on a credit card is a good way to give you a bad credit rating.
4. Paying your bills late is a very good way of having a bad credit score. For this reason, I recommend that you pay the credit card or loan bill as soon as it comes in to insure that you don't forget to get it paid. If for whatever reason this idea doesn't work for you then you may want to set a day of the week to pay your bills. Set the day and stick to it. You can even set an alarm on your cell phone to remind you to pay the bills. Whatever works best for you as long as you find a way to get them paid on or before the due date.
5. If you have a credit card don’t close the account. Closing a credit card account can actually lower your credit score. It is best to get it paid off and either not use it or to make small purchases and pay them off at the end of the month. This is a good way to improve the score as long as you can stay in your budget and pay it off each month. Never max out your account. You will not be able to get it paid off at the end of the month so that will only hurt the score and your budget.
6. If you need more help with getting your credit score raised, you could contact your local bank or credit union for more helpful hints.
The general rule of thumb here is to pay your bills on or before time and not to charge more on a credit card than can be paid off each month. These tips are a sure way to bring up the credit score and to lower your stress about your bills.