If you’re like most people, your credit rating is something that you don’t think about too often. You probably already know that you need a good credit score to qualify for credit products but those aren’t things that you need to do every day. So this three-digit number doesn’t really cross your mind.
It should, though. The fact remains that a bad credit score can affect your life in various ways. Many types of businesses, from insurers to lenders to potential employers, check your credit score to understand how reliable you are. If your credit score is low, it can affect your chances of getting a job, a rental home, a cell phone contract, or a decent rate on your insurance plan.
Luckily, a bad credit score isn’t something you need to live with. By following a few simple tips, you can start nudging that score up. Over time, you can increase your score to a level that will actually help you, instead of hurt you. Want to improve your credit score? Here are some tips.
Check Your Credit Report
Your credit score is based on the details that are available on your credit report. That’s why it’s important that you check your credit report from time to time. When you review your report, make sure to look for mistakes and dispute the errors you find.
Make Bill Payments on Time
On-time bill payments can have a huge impact on your credit score. If you are even a few days late to pay your bill, your credit score can drop substantially. And the longer you delay paying your bills, the more your credit score will drop. So, it’s a good idea to set up reminders or automatic payments so you don’t miss making repayments.
Repay Debt
Next to making payments on time, the biggest factor affecting your credit score is how much credit you use. The portion of the available credit that you’re using is called your credit utilization rate. Credit bureaus say you should ideally keep this to under 30%. You can bring down your credit utilization rate by repaying some of your debt.
