It seems like every time I turn on the TV there is a commercial about bad credit, and how companies can still approve loans despite that bad credit. A better option would be to work to improve your credit so that you don’t have to pay ridiculously high interest rates on the loans offered by these companies.
Your credit rating is like a report card. Having money problems, filing personal bankruptcy or making a consumer proposal will result in a bad mark on your credit report card. Therefore to rebuild your credit rating you have to get as many good marks as possible.
Here are some tips that can help you improve your credit score:
Always pay your bills on time. Making a credit card payment even one day late will hurt your score. If you’re paying online, send the payment at least three banking days before it’s due to allow enough time for the transaction to be processed. Setting up a small automatic payment to your card issuer each month will ensure you never forget to pay at least the minimum.
Don’t go over the credit limit on your credit card. If you’re close to being maxed out, make sure you pay more than the minimum or the interest due could push you over your limit. Going even slightly over your limit will hurt your score each month it happens.
Reduce the number of credit applications you make. Even if you are just looking at getting a credit card for a one-time purchase, it may look negatively on your credit, especially if this is a regular occurrence. However, your score does not change when you ask for information about your own credit report.
Don’t close unused credit cards. If you have a low-interest card you don’t use, keep it open and use it periodically. Having a zero-balance credit card actually helps to improve a low score.
If you’re struggling to pay your credit card debt and need help, contact our office today for a free, no-obligation consultation. We can help you get out of debt and get you started on the road to improving your credit score.
