How to Fix Credit Score

Tips to Fix Credit Score

First Published Date: February 18, 2015

A bad credit score can make it difficult to get a loan or mortgage and also force you to pay more interest than you would normally pay with a better score. Today, I will talk about some simple things you can do to improve your credit rating.

Check Credit Report – Contact credit bureaus like Equifax or TransUnion to obtain a free copy of your credit report every year. This can be done online as well. If you find any errors, have those corrected by filling out a form or you can contact your financial institution if they caused the error.

Have A Mixture of Credits – Having different types of credits such as credit cards, personal loans, and mortgages help improve your credit score.

Don’t Be Rough on Your Bank Account – Stretching your bank accounts beyond their limits such as writing NSF cheques, drawing overdrafts, etc. will hurt your score.

Pay Off Credit Cards – Paying off your credits positively affect your credit score more than paying off other instalment loans such as mortgages, personal loans, etc. Try not to exceed 30 personal balances on each card in which you carry a balance.

Use Old Cards Sometimes – Don’t keep too many credit cards, but don’t close your oldest credit cards either. Charge a few dollars on those oldest cards occasionally and pay them off right away. Keeping these cards active will have greater weight on your credit score.

Don’t Believe – Don’t believe ads that promise to fix your credit score faster by paying them fees. The facts that affect your credit score cannot be erased or fixed by someone and will follow their course to stay on your report until they complete their timeline. Only you can improve your credit score by acting responsibly and taking proper steps in the right direction.