• Skip to main content
  • Skip to secondary menu
  • Skip to primary sidebar
  • Skip to footer
  • HOME
  • RECOMMENDED BOOKS
  • FREE TOOLS
  • CONTACT US
  • ABOUT

The Fortunate Investor

Investing, Business & Personal Finance For Wealth Builders

  • Save Money
  • Invest Your Money
  • Get Out of Debt
  • Making Money Online
  • Family & Money
  • Taxes
  • Business
  • Retirement
    • Retirement Calculator
Home » Looking To Improve Your Credit Score? Here Is What You Should Do

Looking To Improve Your Credit Score? Here Is What You Should Do

February 23, 2021 By Kevin | This article may contain affiliate links. For more information visit our Disclosure

Tweet
Share
Pin
Share
Share

Looking To Improve Your Credit Score Here Is What You Should DoYour credit score tells a lot about you. It is the tool that financial institutions use to gauge your money management skills. It is also a significant factor used to determine how much you can borrow and at what interest rates.

Granted, having a good credit score can make life easier for you. If you have trouble building and maintaining a good credit score, here is what you need to do.

Get a Credit Report

The first thing you should do if you want to build your credit score is to get your credit report. That way, you will know the areas you should improve to get a better rating.

For instance, if you are good at paying bills but max out on your credit cards often, you will see it in the report. With such analysis, you can see your strengths and create a strategy to improve your weaknesses.

Pay Your Bills On Time

If you look at how leading credit bureaus analyze consumer credibility, you will notice that an individual’s payment history carries the most weight in determining their credit score. Usually, the payment history takes at least 35% of the financial credibility analysis. This is why you should be punctual in paying bills.

If you often forget the dates when bills are due, consider creating a digital planner to remind you when you need to pay various bills. You could even activate alerts to remind you of the deadlines, so you are never late in paying a bill. According to IT expert Adrian Jones, using technology can go a long way in improving your finances. 

Another trick is to have your bank deduct your dues automatically as soon as the money hits your account. That way, you will not have a hard time paying your bills.

Alternatively, consider charging your bills to your credit cards so they are deducted when they fall due. Doing this can go a long way in improving your credit score.

Limit Your Use of Credit Cards

Limit Your Use of Credit Cards

Another critical step in building credit is using credit cards with caution. If you are reckless with your credit cards, you may soon find yourself steeped deep in debt.

A good rule of thumb is always to spend less than 70% of your credit limit. That way, you will rarely be tempted to exceed your limit, and you also have reserve money for emergencies.

If you need more credit, don’t hesitate to ask your credit card company to extend your limit. Fortunately, this is a simple process that you can do online from the comfort of your home. A higher limit means that you will spend a lower percentage of your credit, which will reflect positively on your credit score.

Consolidate Your Debt

If you are indebted to multiple lenders and want to reduce the interest you pay, you should consider consolidating your debt. This is where you bring all your debt under one lender so you can enjoy lower interest rates and have better control of your finances.

Consolidating your debts means that most of your debt is paid off faster, which is good for your credit. Consider talking to a personal finance expert to know the debt consolidation options that are best for you.

Conclusion

There is no denying that having a good credit score is good for your financial health. If you follow the four steps on this post, you should find it much easier to rebuild credit and enjoy the benefits that a good credit score has to offer.

  • About
  • Latest Posts
Kevin
Kevin has been a professional writer in personal finance and business topics for over 20 years.
Latest posts by Kevin (see all)
  • Simplifying The Quest Of The Online Side Hustle - February 23, 2021
  • Looking To Improve Your Credit Score? Here Is What You Should Do - February 23, 2021
  • Here’s How To Grow Your Business Without Growing The Risk - February 17, 2021

Primary Sidebar

Popular Articles

4 Things to Do If You Want to Get Out of Debt

4 Things to Do If You Want to Get Out of Debt

Whether small or significant, debt is something that affects everybody. It could be credit card debt … Read More about 4 Things to Do If You Want to Get Out of Debt

Simplifying The Quest Of The Online Side Hustle

Simplifying The Quest Of The Online Side Hustle

Time and time again these days, we’re bombarded with suggestions for top side hustles that are … Read More about Simplifying The Quest Of The Online Side Hustle

The Benefits of Using A Reciprocating Air Compressor for your Business

How to Establish A Manufacturing Business During 2021

Starting a business takes a lot of time and dedication and growing your business is something that … Read More about How to Establish A Manufacturing Business During 2021

Everything You Need To Know About Using Loans To Clear Debt

Everything You Need To Know About Using Loans To Clear Debt

The very idea of using loans to clear debt might sound absurd to most of you. After all, one of the … Read More about Everything You Need To Know About Using Loans To Clear Debt

The 6 Best Businesses To Start In 2021

The 6 Best Businesses To Start In 2021

2020 was a tough year for many businesses, both big and small. The pandemic forced companies to … Read More about The 6 Best Businesses To Start In 2021

Footer

TOPICS

SAVE MONEY
INVEST MONEY
REDUCE DEBT
MAKE MONEY
FAMILY & MONEY
TAXES
START A BUSINESS
RETIREMENT

THE FORTUNATE INVESTOR

ABOUT US
ADVERTISE
CONTACT US

The Fortunate Investor focuses on personal finance topics to build wealth. Topics include saving money, investing, managing debt, family and money, taxes, making money, college planning, starting a business, coupons and retirement.

SOCIAL MEDIA

FACEBOOK
TWITTER
PINTEREST
INSTAGRAM
YOUTUBE

Copyright © 2021 Fortunate Investor. All Rights Reserved. | Disclaimer & Disclosure | Privacy Policy | Terms of Service