Pay bills on time. This is perhaps the single most important thing you can do to give your credit score a bump in the right direction. Paying every bill on time for a few months can help increase your score by a significant number of points (just as late payments will make it drop). If you often forget due dates, set up automatic withdrawal systems. The money will be taken from your checking account each month, and you won’t have to worry about it. You can also have reminders sent to your e-mail.
Manage debt wisely. Carrying debt is not wrong. Having too much of it, however, sends a red light to lenders. Check the total amount of any debt you have. Make sure you’re making regular payments on any school loans or mortgages. Being responsible with the money you owe will put you in good stead with future lenders.
Keep credit card balances low. Check the balances you’re currently carrying on all of your credit cards. Then find out what the credit limit is for each one. Ideally, you’ll want to maintain your balances well below the given limit. If you’re close to maxing out any credit cards, make it a priority to pay off the balance in full. This will show banks you’re not the type to push financial limits.
Don’t open many new accounts. If you want another credit card or need to take a loan, that’s not necessarily a problem. Creditors get worried, however, when it looks like you’re shopping around for more and more lines of credit. So open new accounts with care, and handle them efficiently.
Talk to a financial adviser. If you’re in need of some credit boosting and don’t feel comfortable doing it on your own, talk to a friend or adviser about it. Show them all of your accounts, including what you bring in each month and where it all goes. Together you can create a plan to get all of your finances in order.
