Improving your credit score isn’t impossible, in fact in some cases it’s quite simple and steps can be taken immediately. You’ll notice with a better credit score you’re more likely to get approved for a home loan or you’ll get a better interest rate.
The first way you can improve your credit score is by paying down your credit cards and installment loans. If you have high balances you don’t have to worry about paying them off entirely but you should aim for getting them below 30% of the credit limit.
The next step you should take is to limit your credit card usage or quit using them altogether. Adopt a mentality that if you can’t pay cash for it then you can’t afford it.
Check your credit limits and make sure that this is what’s reported on your credit report. If your limit is $10,000 but your credit report shows it as $5,000 then it will seem like you’re borrowing a larger percentage than you actually are – just fixing this one little thing can immediately make a big change.
Use an old credit card. The longer your credit history is, the older your cards are the more valuable and credit worthy you appear. Don’t go out and make a huge purchase but a few small ones you can pay off immediately. This will actually help your rating rather quickly.
The thing to remember when improving your credit score is the longer you’ve had credit the better, the more a company is willing to lend you the better, the lower your balances the better and most importantly you want to prove that you are capable of paying off your debts in a timely manner.