We learn as kids to always do what we can to get good grades. Once you are out of school, and all grown up, however, the need to keep your “grades” up doesn’t go away. From making sure you get good scores on your yearly evaluation at work to doing what you can to improve your credit score, we are always driven to do our best. It is easy, though, for credit scores to get a bit lower than we’d like them to be. Well, it is time to do a little bit of learning to find out some simple strategies you can use to improve your credit score right now. Here are some tips that should help you to improve your credit score in the days, weeks, months and years to come.
Get Rid of Bothersome Balances
Nuisance, or bothersome balances are those small balances that you carry around on multiple credit cards. Maybe you have a few store credit cards with a few hundred dollars on each, a gas card with a bit of money on them, and a lower balance line of credit that has a few purchases on it. Keeping up with all those payments every month is challenging enough. Most people simply make minimum payments on those cards every month, and rarely see their balances going down significantly. These types of accounts can make it difficult to get your credit score back on track.
Try to choose one of those cards this month to pay off completely. Choose the card with the lowest balance and pay it off. The next month, take the money you’d normally pay toward the now paid-off account and pay it toward the next nuisance balance. Keep doing that and before you know it, those small balances will be paid off. This will make it easier for you to keep track of your bills, and lowers the chance of you missing a payment and taking a hit to your credit score. Remember, once you have those accounts paid down, don’t close the accounts. Doing so could ding your credit score. And also avoid making future charges on multiple accounts to avoid getting back into the same situation in the future.
Keep Good Previous Debt on your Report
When people look at their credit reports and see older debts, they often panic. It is common for people to pay off a car, house or other large line of credit and then to call to get that debt removed from their credit reports. This is not helpful, and can actually hurt your credit score. Having a longer history of good debt is good for your credit score. Bad debts will eventually fall off of your credit report. There’s not much you can do about those, other than contacting the lender and seeing if they are willing to remove the debts or maybe even working on a reduced payment plan to get the debt paid off.
These are just two things that people don’t think about when they are trying to improve their credit scores. You should also avoid having too many hard inquiries on your credit, as those inquiries can lower your score. You should also make it your top priority to make your monthly payments on time every month. That is the single most powerful factor that affects your credit rating. Do that, and try to implement the tips that we just shared with you. If you do, you may very well see your credit score begin to rise faster than you thought it would.