5 Steps to improve and repair your credit score
There are several simple steps you can take to improve your credit score and repair your credit.
- Pay your bills on time Late payments can have a significant negative impact on your credit score. Make sure to pay all of your bills on time, even if it's just the minimum payment.
- Reduce your credit utilization Your credit utilization is the amount of credit you're using compared to your credit limit. Ideally, you should keep your credit utilization below 30%. If you're currently using a high percentage of your available credit, try to pay down your balances as quickly as possible.
- Check your credit report for errors Errors on your credit report can drag down your credit score. You can get a free copy of your credit report from each of the three major credit bureaus once a year. Make sure to review your report carefully for errors and dispute any inaccuracies you find.
- Don't close old credit accounts Length of credit history is an important factor in your credit score. If you have old credit accounts that are in good standing, don't close them. Keeping these accounts open can help improve your credit score over time.
- Consider a secured credit card If you have a low credit score, it may be difficult to get approved for a traditional credit card. A secured credit card can be a good option because you'll need to put down a deposit, which serves as your credit limit. By using the card responsibly and making on-time payments, you can improve your credit score over time.
Improving your credit score takes time and patience. Taking these steps and being diligent about paying your bills on time, you can gradually improve your credit score and repair your credit.