If you’re coming out of bankruptcy, foreclosure or simply don’t have a very good credit score, there are plenty of things that you can do in order to boost your score. Some are pretty intuitive while others may not come to mind right away. Below, however, are the five best tips you can use NOW.
Don’t Be Afraid to Dispute
Some people are afraid of conflict, while others think that there is simply no hope in disputing negative notes that pop up on their credit reports. That’s simply not true. Inaccurate accusations should always be disputed, and sometimes you can even benefit from disputing accurate claims. The older they are, the more likely it is that they will be removed upon dispute simply because records are missing. It may be worth a shot.
Build Up a History
It’s important to have as long a history of credit as possible, so don’t go cancelling cards just because they’re a bit older. It’s important to hang onto them and use them from time to time.
Don’t Use Too Much Available Credit
Just because you have it does not mean that you have to use it. One factor in calculating your credit score comes down to what percentage of your available credit you are using. Try to keep that number as low as you can, which shows that you aren’t prone to spending sprees just because you can.
Get Secured Credit if Necessary
If you are trying to rebuild your credit but you are unable to get a credit card due to your low score, then you may be able to get a secured credit card in order to start the process. They function a lot like debit cards, or prepaid calling cards. You simply deposit a certain amount of money on the card, then spend it as you please. You can find a good secured credit card by reading some credit card reviews.
Don’t Make Any More Mistakes
This should go without saying but it doesn’t hurt to see a reminder. Don’t make any more mistakes to dig the hole any deeper. One of the most common mistakes that people make is being late on a payment. It’s not a bad idea to set up automatic payments for the minimum payment, which will ensure that you are never late. You can then come in at your leisure and make a larger payment, if you wish to do so. This is a great way to eliminate some of the risk of a simple mental error.