6 Steps to Improving Your Credit Score

Improving your credit score is not an easy task, but with a plan and a positive attitude, you can achieve it within a year. Here are six steps to take to improve your credit score:

Check your credit report:

The first step is to check your credit report for errors or inaccuracies. You're entitled to a free credit report from each of the three major credit bureaus once a year. Through the end of 2023, you’ll actually be able to receive a free copy WEEKLY through annualcreditreport.com . Review your credit report and dispute any errors you find with the credit bureau. Everyone knows, knowledge is power. Knowing where you stand is the first step to making progress.

Create a budget:

Create a budget that includes all of your income and expenses. This will help you identify areas where you can cut back on spending and use the extra money to pay off debt. As the famous quote goes, “A budget is telling your money where to go instead of wondering where it went.” Having a budget will help you to manage your money better and to pay off your debt.

Pay off outstanding debts:

High levels of debt can have a negative impact on your credit score, so focus on paying off any outstanding debts as soon as possible. Prioritize the debts with the highest interest rates first, and make more than the minimum payments when possible.

Keep credit card balances low:

High credit card balances can also have a negative impact on your credit score. Try to keep your credit card balances below 30% of your credit limit. As the famous quote goes, “The best way to predict the future is to create it.” Taking control of your credit card balances is a step to improve your credit score.

Make payments on time:

Late payments can have a significant negative impact on your credit score, so it's important to make all of your payments on time. Set up automatic payments or reminders to help you stay on track. Benjamin Franklin is quoted as saying, “The only thing more expensive than education is ignorance.” Being responsible with your payments is an important step to improve your credit score.

Keep old credit accounts open:

The length of your credit history is a factor in your credit score, so it's important to keep old credit accounts open, even if you don't use them. As the famous quote goes “The best things in life are the people we love, the places we've been, and the memories we've made along the way.” Keeping old credit accounts open is one of the best things you can do for your credit score.

Remember, improving your credit score takes time and effort, but with a plan and a positive attitude, most people are able to make significant improvements on their own . Approach this process with the right mindset and hopefully you will see the results you desire. As the famous Chinese Proverb goes, “The best time to plant a tree was 20 years ago. The second-best time is now.” Start taking action now to improve your credit score.