Having a good credit score enables you to gain access to credit at lower rates, and increases your ability to make large purchases such as a car or house. Having a bad credit score can affect many aspects of your life including your ability to rent an apartment, and even get a cell phone. If your credit score isn’t where you want it to be, don’t worry! Read below to find out 5 easy ways to improve your credit score now.

  • Make Sure You Have Credit: The first step to improving your credit score is to make sure that you have credit. If you don’t have a credit card then you should apply for one. The key to building your credit is to spend and pay balances responsibly.
  • Set Up A Variety of Credit Lines: Vary your credit types such as a car loan, personal loan, or mortgage. By having multiple types of credit and paying these off on time, you can help boost your credit score.
  • Check Your Credit Report: It’s important to be vigilant in reading over your credit report. You should be looking to make sure that everything is properly reported. For example, make sure that there are no late payments that are incorrectly listed and that the amounts owed for each of your accounts is correct. If you come across errors on your credit report, be sure to dispute them with the credit bureau and reporting agency.
  • Setup Payment Reminders: One of the most important factors that directly contribute to your credit score is making your payments on time. There are many tools available to help ensure that you remember to pay your credit card bills. Some banks offer reminders (you may have to “opt in” if you wish to receive these) through their portals and will send you an email or text to remind you when your payment is due. You can also choose to enroll in automatic payments through your credit card provider. If you do this then the money will be automatically debited from your account. Another option is to simply set a reminder on your calendar or mobile phone.
  • Reduce The Amount Of Debt That You Owe: The key to reducing the amount of debt that you owe is to educate yourself about your accounts, the interest rates that you are being charged, and the amount you owe on each of these accounts. Once you are aware of this financial information, you can prioritize your payback method. You can do this by analyzing your credit report and making a list of all of your accounts. After you understand which accounts you have, check your recent statements and determine what interest rate they are charging you and how much you owe for each account. Make a list and begin with the account that is being charged the highest interest rate. Allocate your funds accordingly by prioritizing your available budget towards paying off the accounts that charge the highest interest while paying the minimum on your other accounts.

Show lenders that you are more responsible than your credit score by making responsible decisions going forward. Make it a priority to pay debts on time, to use credit only when necessary, and to create a credit mix if possible.