Everybody has a credit score and it speaks volumes about your financial health and management.

Generally speaking, the better your credit, the better you are at managing your finances. Banks and other kinds of creditors often look at credit scores to help determine whether you are creditworthy or not to extend your credit and whether you will be able to pay or not.

Though as we all know, Life sometimes throws unexpected curveballs, and certain circumstances may influence your life and your credit score. Losing a job, having an emergency repair, could put your bill payments on hold and negatively affect your credit. Luckily, your credit score is not etched in granite and there are ways to rebuild your credit if you run into financial challenges. 

We present you with some quick tips that will give your credit score a much-needed quick score lift—sort of like jumper cables for credit!

1. Pay bills on time

This factor holds the most weight on credit score calculation and shows your responsibility towards debt payments. So be diligent and persistent with your payments. If your credit score has tripped and tumbled in the past due to missed payments, it’s imperative that you make sure these habits change. Even if you cannot pay in full, be sure to make the minimum payment.

2. Watch your credit card balances

Using your credit card in a sound manner i.e., credit utilization is important for good credit health. It is a substantial contributor to the credit score. Make sure not to max out on your credit card, try to use a little less than the limit, preferably spend less than 30% of your credit limit. But if you’re looking to spend more on your credit card, consider asking for an increase in your credit limit to give you a little more wiggle room with your credit card so that spending is within the limit.

3. Don’t senselessly open new credit card accounts. 

If you apply for new cards, make sure you don’t do it too frequently. This behavior may look reckless to creditors. As it is a sign to any lender that you are repeatedly applying and being denied for new credit. This, in turn, might pose a question in their mind that you must be having a significant debt problem and that If other lenders are not approving your applications, why should they?

4. Alert banks and card companies and check your accounts online. 

At times bills go overdue and unpaid as the mail didn’t go to the correct address. So, it is essential to alert your banks and companies with the correct details. Also, if you haven’t received your bill in the mail, make sure to check your accounts online for due payments to make sure payments are cleared and cards are being kept current.

5. Pay off delinquent bills/Debt

Paying down delinquent accounts will not remove missed payments from your report. But it can make you look better and a little bit responsible to creditors. Also, to boost your credit score, one of the key essential points is paying off your debt. Having too much debt on the books is not good for your credit health-overwhelming debt certainly has the opposite effect on your credit score.

6. Scour and clean errors 

Sometimes information reported to the credit reporting agencies is not right or is incomplete. So, it is recommended to draw your credit report once a year, not only to see your score but also to make sure all the information is correct. If you do notice any errors, report them to the respective credit bureau to have them investigated and rectified. Fixing even the smallest error can make an influence your credit score. You can always report the inaccuracies to the credit reporting agencies.

7. Apply for a Secured Credit Card

A secured credit card is the perfect financial product for those who may have a hard time getting approved for a traditional credit card or who have a bad credit score. These cards require a deposit to be made against them, which serves as the credit limit. Technically, you are only allowed to spend whatever you have already put into the card, and every payment you make will help you slowly and steadily improve your credit score.

A good credit score can help you gain access to financial tools and products along with reasonable interest rates. If your credit score isn’t up to their standards your application but sure to adhere to best practices, routine, and measures- pay off the debt in a responsible manner, avoid overspending, and unnecessarily. Just like dental hygiene is preventative maintenance to ensure your teeth and gums are the best to follow a similar routine for your personal credit history. Be sure to follow the tips mentioned by us and take control of the financial future, understanding the correlation between your financial well-being and your credit score. 

Stressed about the mortgage process due to a low credit score? Don’t be stressed, contact our mortgage broker/agent for better understanding and quick approvals at the finest rates!