If your credit score isn’t where you would like it to be, then you should consider changing some of your spending habits and pay closer attention to your monthly statement. Even if you have small debt, missing monthly payments can still negatively affect your credit score. Here are a few tips to help you improve your credit score.
Pay Off Any Small Balances
Small things can add up. If you have any small balances on your card then you shouldn’t neglect paying them off. Missing your payments can have a bigger impact on your credit score than you think—no matter how small they are.
Make More Than Just The Minimum Payment
If you just make the minimum payment then you will have a hard time getting out of debt. Try to make more than just the minimum payment and keep at it until you can get your balance down to a respectable size.
Keep Below Your Credit Limit
If you exceed 70 per cent of your credit limit then you should consider reducing that figure. So if, for example, your credit card limit is $1,000 then you should not go over $700. It is always a good sign on your credit report when you use less than what is allowed.
Don’t Avoid Collectors
If you keep avoiding your debts, then you risk having them being taken over by a collecting agency. If there is a collections report on the public records section of your credit report then pay the agency right away if you can. Have them remove that report from your credit history.
Have Your Old Debts In Good Standing
Having old debts show up on your report is not a bad thing, but make sure that you pay it off as agreed. Having a good credit score is not necessary about being debt-free but about using credit in a responsible manner. The longer your credit history is, the better it will actually be for your score.
Increase Your Credit Limit
It is also a good idea to try and increase your credit limit. The higher your credit limit, the lower the percentage will appear for the amount you are actually using. But you should only increase your credit limit if you feel that you will be responsible enough to keep below the desirable threshold.
Having a good credit score can be easily done if you pay attention to small details and keep up with your payments. It is never too late to be financially responsible, and the more of an effort you make, the better you are able to increase your score. If you would like more advice on how that can be done, then speak to one of our representatives for a free consultation. They will be able to help you find a personalized solution.