In regards to credit cards, you’ve heard the classic 3 ways of boosting your credit score: keep an eye on your credit report, reduce the amount of debt you have and pay everything off on time. That is often easier said than done. More often than not, by the time that you realize your score could use a boost, you’ve found yourself in a hole too deep for these tips to have an immediate effect. Here are 3 healthy habits that you can start doing to help you start getting out today.
1) Pay off your bills before the statement date. Credit reports take into consideration how much of your total credit limit you use consistently. If you are using a high percentage of your credit limit consistently, your credit score will drop. Strive to keep a low balance on your credit cards and it will keep your credit score high.
2) If you are paying off a credit card or a debt, consider making multiple payments within a month. This can do 2 things for you. First, it will reduce the total balance you owe, showing credit reports that you consistently owe less at the end of every month. In reality, you may not be spending less, but the credit score companies think you do. Second, that bill will take first priority when your pay check comes in. When you realize that you owe a certain amount every week, you’ll be more careful to save the money necessary to pay it off on time. This will help you to consistently work your way out of the tunnel. Talk to your bank and find out if this is a possibility.
3) Should a past due statement be sent to collections, you can talk to the collection agency about removing the debt from your credit report. They will often agree to do it if you agree to pay off the entire balance. Once they have their payment, your blemish will be removed, instantly healing a part of your credit score.