12 Easy Steps To Improve Your Credit Score

Before you begin to improve your credit score, you’ll want to pull your credit report from all 3 of the Credit Reporting bureaus. You’ll want to go online and sign into the agencies and then peruse your credit reports and see what you have outstanding. Now that you know what is outstanding you can begin the 12 ways to improve your credit score.
More and more sites are giving you your credit score for free. If you have a credit card that offers this service you can already see where you’re at. If not, there are some sites online that will also allow you to see your credit score for free. Just sign into them and begin your journey to an improved credit score.

1. Prioritize your outstanding bills according to how much the interest is. You’ll be gradually paying these off according to the highest interest. You’ll have this list on your credit report so go over it carefully and make sure you don’t leave anyone out.

2.Plan your budget for the month each month (some paychecks will vary so plan accordingly). Take out a pre set amount of cash for incidentals such as bus fares and other recurring monthly expenses. Set this aside and use it only for the intended purpose. If you have a mortgage or rent payment take that out next. You’ll need a roof over your head so this is very important.

3. Pay the minimum on each of your outstanding bills. You may have already worked out a minimum payment plan with each creditor, if you haven’t already worked this out, give them a call and go for the lowest possible payment arrangement that you can make. Even if it’s only $5 you’re going to be making some progress here so stay with us. If you don’t have enough money after being paid to do this, see below for some ideas and suggestions to help you make some extra money to do this.

4. Taking the highest creditors interest rate into account, pay double on that account. If you can pay more, by all means do so.

5. If you have any accounts that are under $100 make every effort to pay one of those off each pay period. If you can’t come up with $100 to pay them off, see below for a few strategies to get you there.

6. After you’ve made payments in this fashion for two months recheck your credit score. By now it should be slowly climbing up the ladder. Even if it’s only a few points you’re making progress. Don’t give up now, you’re on your way. Continue on your path to financial freedom and an improved credit score.

7. Now look at your credit cards. Are they maxed out? If so, again look at the highest interest rate and pay extra on that one while maintaining all of the others at minimum payment. Do not use these cards at all unless it’s a dire emergency. No exceptions. If you can’t trust yourself, put your cards away in a safe place until you get them paid off. This is a great way to build your credit and improve your credit score. Learn to live on cash and budget everything. Save for those “must have” items and wait to purchase them until you can afford them in cash.

8. It’s important to continue paying your rent or mortgage in a timely fashion as well as the rest of your bills such as your utilities and if necessary a cell phone. This will reflect in your credit score so try not to get behind on these.

9. Scale back where you can. This may mean no cable or satellite television. It’s okay, it’s not forever and there are other online programs and services where you can view television for around $12 per month if you have internet access. You won’t be dining gourmet either but if you learn to cook you can still enjoy some great meals.

10. Consider taking a second job, a side job or some other part time job that will earn you some extra income. Apply the extra income to paying off the debt as quickly as possible.

11. If you can’t find a second job or side or part time job consider having a yard sale or garage sale (better yet, do both). Simply go through the house and gather up what isn’t being used and put it out for sale with low prices. It will add up and you may just be able to pay off another bill.

What doesn’t sell in the yard sale or garage sale may still be usable, if so, consider putting it on an online auction site or on an online yard sale type site. Again, put all the earnings from this to paying off debt.

12. After six months of working diligently like this again pull your credit score. You should see a lot of improvement by now. Keep up the great work.

Improving your credit score is going to take diligence and effort. You may have to make some sacrifices in your habits and lifestyle. You’ll have to budget very carefully and make every effort to change your spending habits. It may be a huge challenge for you and your family, but if you persevere the rewards are great in lower interest rates and perhaps a better loan.