Having a good FICO credit score in today’s world isn’t just a good thing, it is a necessary part of life. If your credit is below what is considered good, you have a higher chance of being denied for credit cards and loans. You will also most likely not get the best rates or terms. This is why you need to take improving your credit score seriously.

If your FICO score is lacking, try these helpful tips to get you back to where you need to be.

Pay All of Your Bills On Time

You know that not paying your mortgage or car loan payment by the due date will hurt your credit, but not paying your other bills on time can also negatively impact your score. Be sure to pay all of your bills when they are due, so you do not have late payments reporting on your credit report. Late payments on any of your obligations will ding your credit.

Don’t Use All of Your Available Credit

Just because you have a $10,000 limit on your credit card doesn’t mean you should use it. Having balances on your credit lines that are close to their limit is a red flag for lenders. You should try to never use more than 30% of your available credit according to Rebuild Credit Scores. Start trying to pay your high balances down as much as possible now. The lower the balances, the higher your credit score will be.

Check for Inaccuracies

Keeping an eye on your credit report is the easiest way to be sure your score is improving. If you never look at what is on your credit report, you will never know if there are errors. You are entitled to one free credit report per year from each of the three credit reporting agencies. Be sure you are requesting your free reports and looking them over for incorrect or questionable items. Always dispute any errors that you find.

Realizing your credit score needs improving is the first step in the process. It may take some time, but by following these steps you can see significant improvements in your credit score.

You can also contact us for professional help with rebuilding your credit.