NEW YORK – March 7, 2023 – ( Newswire.com )
iQuanti: Your credit score has a significant impact on your life. A good credit score can help you get a mortgage, a personal loan, credit card consolidation services, and even a job. A bad credit score can prevent you from getting any of those things.
If your credit score is low, don’t despair. You can do some simple things to start rebuilding your credit today.
1. Get a copy of your credit report and review it regularly
The first step to rebuilding your credit is to know where you stand in the eyes of financial institutions. You can get a free copy of your credit report from each of the three major credit bureaus once per year. Review your report carefully to make sure there are no errors. If you see anything that looks wrong, dispute it with these credit bureaus.
2. Make all of your payments on time
Payment history is influential in determining your credit score, so you must make sure you pay all of your bills on time. Set up automatic payments if possible, so you don’t have to worry about forgetting to pay them.
3. Be mindful of your credit utilization ratio
Credit utilization is another important factor in your credit score. Keeping your debt balances below 30% of your total credit limit is best. For example, if you have a credit card with a $1,000 limit, you should keep your balance below $300.
4. Consolidating credit card debt
A long credit history can be good for your score, so you don’t want to close old credit accounts—but that doesn’t mean you have to let old credit card debt linger. If you can find a lender willing to give you a loan for credit card consolidation purposes, you might be able to keep your old credit accounts open without worrying about unruly interest charges adding up.
5. Get a secured credit card
Getting approved for a regular credit card may be challenging if you have bad credit. However, you deposit money when receiving a secured credit card that becomes your credit limit. So, if you put down $200, you can only spend up to $200, which can be an excellent way to limit your spending and show off healthy credit practices.
6. Become an authorized user on someone else’s credit card
If you know someone with good credit who trusts you, you can ask them to add you as an authorized user on their credit card. You’ll get a card linked to their account that you can use, but the activity will show up on your credit report.
7. Use a mix of different types of credit
Having a mix of different types of credit is also good for your score. So, in addition to a regular credit card, you might want to get a car loan or a personal loan. Just make sure you can afford the monthly payments.