The Top Ways to Improve Your Low Credit Score

Plenty of people all throughout the country deal with the issue of having a poor credit score. It puts those who have to deal with it at a significant disadvantage to the rest of the population. In order to get out of this situation, it is necessary to take some steps to improve what has happened so far.

Check To See Where You Are

One problem with credit scores is that people do not check them frequently enough. Some just don’t realize that they are entitled to see some free checks of their score every year, others just don’t think it is important. The truth is, it is very important to check your score, and you are entitled to check it for free once per year from each of the three major credit bureaus.

There are other tools available out there which may make it even easier for you to get access to a rough estimate of what your score is as well. Websites have sprung up to make it easy to get a rough estimate of what your credit score is at any given time. They currently limit users to getting their free check once per week, but that is a lot better than once per year!

See A Mistake? Dispute It

Kiplinger recommends that you dispute any mistake you see on your credit report as quickly as possible. That seems like pretty wise advice when you consider reports like the one ran by CBS News that suggests that four out of every five credit reports has some kind of error on it.

Mistakes on a credit report can adversely impact your score even though you did not deserve to be impacted. It is always best to check on your reports as often as possible in order to get the most up to date and accurate information you can.

Start Paying That Debt

Your credit score is nothing more than a measure of how well (or how poorly) you have managed your debt in the past. If you have a lot of debt outstanding, you are likely to see a declining score. The same happens if you routinely miss payments. Not only do you incur late fees by doing that, but also end up with higher interest rate payments and a worse credit score.

Programs exist such as the Dave Ramsey Financial Peace University which have helped countless people get their life back on track. It shows you step by step what to do to stop swimming in so much debt and actually start paying down what you owe. A lot of people swear by this program, and will tell you that it is the only thing that worked for them.

Avoid Getting Any New Credit Cards

The worst thing that you can do if you have a lot of debt is to keep applying for more of it. There is absolutely no reason why you should take out any more credit cards if you already have debt waiting to be paid. Instead, you need to consolidate the cards you have if possible and start working on paying them off.

New credit cards do add to the total amount of debt that you can possibly borrow. However, they also add to the number of lines of credit that you have out. You do not want the credit bureaus to see that you have a lot of existing lines of credit out. That will only cause your score to fall even more.

Set Those Payments On Auto-Pilot

A lot of times missed payments have to do with simply forgetting when the payment is due. You get caught up in everything that is going on in your life and forget to pay the bill. It could happen to the best of us. However, you do have options to avoid this altogether. You may choose to just set your payments to come out on a certain day in a certain amount automatically.

Auto-payments are a great way to never miss a payment again and not have to think about it. Just set it up and it will happen electronically every month just as you have scheduled it. If you are able to do so, pay more than the minimum to see a boost to your credit score.

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