Repairing a bad credit score will not be easy. It is recommended that you at least start the process before applying for a loan or financing for home improvement projects. There are ways to improve your credit score but prepare for some tough decisions.
6 Ways to improve credit score:
Pay your bills on time
The best way to keep your credit score up is by simply paying your bills on time. Be consistent month to month and make sure that all your bills are settled. Save money if you are planning a big purchase, but keep everything else clean and consistent.
Watch credit card balances
Keep your balances low. Pay down as much as you can and try to use as little as possible.
Take care of credit card balances
Avoid having several credit cards with small balances. Pay up the balances and stick to one or two cards to pay for everything. Charging small amounts to different cards can hurt your credit score.
Leave old debt
Leave your old debt and good accounts on your record. This is good history that will show you in good light. Don’t try to get rid of it as soon as it is paid up. Accounts and debt that you paid and handled well are good for your credit score.
Avoid payments that indicate risk
Steer clear of suddenly missing payments or paying less than you should. This indicates risk. Payments to pawn shops or divorce lawyers also indicate risk.
If you are preparing for a big purchase, keep track of your score. Pay your bills and keep to smart spending behaviors. However, do not get obsessed. Credit inquiries can cost you. You are entitled to a free copy of your credit score at least once a year. Request it and keep track of what you are doing.
The process to repair your score will take time. Stick to smart decisions regarding credit and spending and you should be on the right track.