Managing and building credit can sometimes feel like a challenge. There can be so many different factors that affect your credit score that it can get difficult to keep track of. Here are a few things to focus on when it comes to building and maintaining a good credit score.

1. Check your Credit Report

The first step in improving any credit score is to check your credit report. Check for any errors that may have come about without your knowledge, which may include late payments listed incorrectly, any accounts that you may have not actively opened on your own and others. These errors can be a sign of a bigger issue that should be disputed through the credit bureau.

2. Set up Payments

The second thing that can be done is to set up payment reminders. Sometimes it’s difficult to keep track when you’re juggling a lot of different payments. To avoid missing a payment, set a schedule for when each payment is due each month, follow this schedule and budget your income accordingly so you do not miss a payment or get any bill mixed up.   Automatic payments to specific accounts can also be set to ensure bills are paid on time, if this is something you are comfortable with. Just make sure you have the amount available when the payment is taken out of your account.

3. Avoid outstanding debt

The third thing that can be done is to make sure you do not put yourself in a large amount of debt. If you owe a large amount of debt, you might be digging yourself out of a hole for a long time. If you reduce what you owe by making regular payments, future payments will be smaller and keeping track of what you owe is easier. The best way to reduce your debt is to not use your credit cards often or even at all if you can help it. Creating payment plans will help decrease your debt in a timely manner and provide some comfort when it comes to each monthly payment. Make sure to calculate interest rates that are tied to each account or credit card that you own.

Doing these three things should provide a chance to improve your credit score over time. It’s important to remember that credit scores cannot change overnight and that it is a gradual process that takes time, patience and discipline.

Have any questions on what your credit score can do for you? Contact Housing Buzz with any questions concerning credit scores and its future for you.






Reference: Improve Your Credit Score