Improving your Credit Score: What Does it Take?

If you have a history of bad credit habits, fixing your credit can be tough, but it is possible. Here are some ways that you can improve your credit and get back to not worrying about your standing with the credit company.

Pay On TimeCredit Score Sign

Paying credit card bills on time is easier said than done, even if you have the money but are just too disorganized to remember to pay it. Thankfully, with online banking you don’t have to worry about missing another payment – you can set up your account to automatically withdrawal from your checking account.

Use with Caution

Sometimes movies can make it seem like credit cards are magical free money, but here in the real world, they aren’t. Don’t buy everything with your credit card or you’ll go over your limit. You never want to max out your credit card or it will seriously affect your score.

In fact, going over just 30% below your limit is a risk as well. If you need the extra credit and know you can pay it off, consider getting another credit card and staying below 30% of that limit too, rather than maxing out your only credit card every month.

Keep Unused Accounts Open

Credit cards are just like old coins – the older they are the more value they have. Well, they’re not exactly the same, but having older accounts open does affect your score positively. It proves that you have a long history of paying off your cards on time.

It’s not easy to fix a credit score, but with a little effort (and possibly a little restraint), you can have a higher score than you thought possible.

photo credit: LendingMemo via photopin cc

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