First thing to know about credit scores is that there are NO “quick fixes.” Be leery of advice that tells you otherwise because those tips can easily backfire just as quickly. There are three key factors that can help boost a low credit score. These three little, but effective, measures include:
Keep Low Balances
The balance of your various credit cards or line of credit account for 30% of your calculated score. Keep those balances low, even if they’re spread out among multiple cards, is better than one large balance on a single credit account.
Make Your Payments on Time
Your payment history accounts for 35% of your credit score. Even if you can’t pay anything more than the monthly minimum balance, your continued history of paying on time reflects greatly on your reliability as a possible lender.
Get Periodic Credit Checks
Aside from ensuring no damaging, incorrect information is being reported to your credit, checking your credit every 3 months or so will act as your road map of how to best improve your score. Turning your credit around doesn’t happen by accident. You need to have a plan, stay informed, and take control.
While these three tips aren’t really novel concepts, they are highly effective. Keep in mind, Rome wasn’t built in a day and nor can you build your credit score overnight. It takes time and a little bit of discipline, so don’t give up. Before long you’ll start seeing that score creeping up.
In addition to these three steps, a slightly larger way to help your credit score is to be invested in some kind of an installment loan, such as an auto loan. That kind of commitment looks good on your credit report, especially if with every on-time payment.
Another source of information on how to spruce up your credit score, is your personal banker. Whatever bank you’re with, their personal bankers have lots of information on your particular score and credit history. They know who to get you in contact with to fully understand what in your history is hurting you most so you learn for the future.