Your credit score can have a surprisingly large impact on your life so it’s important to stay on top of how you’re ranked. Things such as home or car loans and even new phone plans can quickly become out of reach if your score is considered less than satisfactory and it can even impact your reputation. Luckily, there are a few simple ways to improve your credit score without much impact on your lifestyle.
Borrowing To The Rescue.
It may seem odd to borrow money when your credit score isn’t great, but as long as you pay the balance back in time, taking out a few small loans can help you yet back on track. Every time you successfully pay off an account before the repayment deadline, your score will get a little better and although you’ll be paying a bit of interest, it’s better to spend a little than miss out on something big because your score isn’t good enough. This is especially true if you use your loans to consolidate and pay off your debts as anything outstanding against your name counts to your score and while you may not think a personal loan here or credit card debt there really makes a difference, they can have a surprisingly large impact on your overall score so it’s always best to get rid of them as quickly as possible.
Dispute Inaccuracies.
We’re going to presume that since you’re reading this you’ve already found out what your credit score is (if not, you really should check, there are plenty of places to get free reports from) but have you combed through to make sure each point is correct? According to the professionals, there’s no guarantee that every entry is accurate, and if there are any that are wrong, they could be dragging you down. It could also be the doing of a debt collector without your knowledge. Go over your credit report with a fine-tooth comb and dispute anything that doesn’t look quite right.
Pay Your Bills On Time.
Utility bills can be great for boosting your credit score when they’re paid on time or early and since you’re required to pay them anyway, you can get great kickbacks with minimal effort. Many suppliers also offer discounts when you pay early so you get to improve your credit score and save some money. Additionally, as long as a new phone plan can fit comfortably in your budget, it could be time to treat yourself. Everyone loves shiny new toys and as long as you’re paying your phone bills before they’re due, you’re setting yourself up for a better score. Just remember that this is more of a long-term solution as most contracts don’t count until they’re completed.
Consider A Credit Card.
This one is last because credit cards should generally be avoided whenever possible and this is pretty much the only time when we would suggest getting one. If you have the willpower and the means to have a credit card without blowing your budget, making everyday purchases on credit and paying them off BEFORE each cycle ends can help improve your credit score over time.
Improving your credit score isn’t going to happen overnight but that doesn’t mean you shouldn’t bother. Getting your affairs in order now can save you a lot of trouble in the future and a good credit score will never be a bad thing. Follow these four simple steps and you’ll be well on the way to an improved score in no time.
