Is your credit score not where you would like it to be? We get it. Life happens. Don’t let a bad credit score get you down. The good news is that there are easier ways to boost your credit score.
Try to improve your credit scores by following these simple steps.
How is a Credit Score Determined?
Have you heard of Experian, Equifax, or TransUnion? These are credit reporting agencies, and they define your credit score by collecting information on where you have open accounts including credit cards, mortgage lenders, and utility companies.
They use what’s called a Credit Score Model to determine the likelihood of you being able to repay your debts.
What Can Affect Your Credit Score?
While various Credit Score Models may weigh categories differently, there are a few common ones to keep in mind.
- Payment History
- Recent Credit
- Credit History
- Credit Usage
- Credit Types
To better understand your own credit score, it’s recommended you check your credit report on a frequent basis. In fact, these agencies are required by federal law to give you a free credit report every 12 months.
How Can I Fix My Bad Credit?
Consider these top tix for fixing your credit score.
1. Review Your Credit Report for Errors
While each credit reporting agency uses the Credit Score Model, it’s not perfect. Mistakes happen. Frequently, check your credit report for any errors that may affect your overall score. If you see an error, contact the agency to file a dispute.
2. Pay Bills on Time
Keeping up with all the bills can be a hassle. A delinquent payment can impact your overall score decline over time.
To mitigate the risk of a delinquent payment there are a couple of things you can do. Try to set a monthly calendar reminder of when your bill is due or consider setting your bills on auto payment reminders.
3. Biweekly Payment for Your Billing Cycle
Bills typically get paid at the beginning or at the end of every month. However, most people don’t realize the advantage of breaking up your payments. If you can afford it, pay down your bills every two weeks rather than once a month. This lowers your credit utilization and improves your score.
4. Use Credit Cards Wisely
An easy way to improve your credit score is through a credit card. A long credit history reflects positively on your report. When you do use a credit card, be sure that you’re able to pay off the monthly balance. Consider using a dedicated credit card for gas purchases only.
5. Pay Down Debt
To pay down your debt, the best thing you can do is put a plan into action. For example, many use the “snowball” method. The goal of this method is to pay off your smallest debt balance first. After you pay that off, focus on the next balance. You can use the minimum payment you were making on your previous debt to apply it to the new debt.
Can my Credit Score Impact My Ability to Get a Payday Loan?
Worried your bad credit is holding you back from getting a payday loan? No worries. No credit score is necessary to apply for a payday loan at Money N’ Minutes. We offer a quick process with no hidden fees and a flexible payment schedule to deliver you money seamlessly.