Any time you’re struggling with poor credit, it can be tough to find the motivation to improve your situation. You might feel that your credit isn’t in bad enough shape to justify paying someone else to help you fix it, or you may just be too busy to invest the time necessary to do so on your own. Fortunately, some of America’s most industrious people have found success despite their checkered financial pasts, and you can too by following their simple tips for improving your credit and getting your finances in order. All you need is patience and resolve!
1) Start Saving
No one is immune to financial problems. Whether it’s a missed paycheck, an unexpected medical bill, or even a lost job, everyone needs some help from time to time. And that’s where credit improvement services can come in handy. As many as 62 million Americans have debt they cannot pay off — so don’t feel like you are alone if you need a little assistance making ends meet. Take these simple tips for people and see if they can be applied to your own life situation.
For example, here are just three ways to improve their credit:
1) They get jobs;
2) They keep those jobs;
3) They work hard at those jobs.
Try asking yourself how well you’re doing on each of these points. Sometimes we forget how important it is to keep our finances in order—but by looking toward communities with centuries of practical experience, we can find ways to improve our lives without changing who we really are!
2) Don't Open Several Credit Cards at Once
A lot of people think that opening several credit cards at once will improve their credit score because it shows creditors that they’re able to handle debt. The problem is, if you don’t pay off all of your debt on time and in full, each creditor will list your late payments on your credit report—and you may even get slapped with a late payment fee from one or more of them. Instead, try opening one new card per month and paying off all charges before their due date. Your history will be much cleaner when it comes time to check your credit score.
Before you sign up for a new card, make sure to compare offers with NerdWallet’s best balance transfer credit cards list. If you aren’t getting approved by certain issuers, look into Credit Scorecard; it’s an online tool that lets you access your TransUnion credit reports and FICO scores instantly! It’ll also give recommendations on how to improve them faster. Many things every young professional should know about credit scores – including simple steps anyone can take toward improving theirs!
3) Use Credit Cards Correctly
One of the best well-known credit improvement tips is to pay off your cards every month, in full. This can help you repair your credit history quickly, but it also helps avoid interest payments and pay off debt faster. If you are not able to always make purchases on a card completely each month, try to at least pay them down as much as possible before putting them off until next month. This can help avoid running up high interest balances and make sure your debt doesn’t spiral out of control. It’s also a good idea to open only one or two new credit accounts at a time, as too many at once could negatively impact your credit score. And don’t forget to use your credit regularly; if you don’t, that activity can have an adverse effect on your credit report and score.
4) Avoid Interest by Paying Off Balances Each Month
One of my biggest peeves is interest charges on my credit cards. If you pay your balances off each month, you shouldn’t have to worry about interest (or late fees, of course). This doesn’t mean that people who have credit cards should never charge more than they can afford; however, it does mean that if you need a new pair of jeans or a day at the spa, then pay cash or use your debit card instead. You can also reduce your credit utilization ratio by spending less than you earn each month. In other words, try and keep as much money in your checking account as possible. Every little bit counts when it comes to eliminating debt.
From Cutting-Edge Technology to Making Important Decisions: Even though credit scores vary from lender to lender, there are some things that all creditors want to see before extending credit. Some examples include: a good employment history, length of time living at an address and proof of steady income like direct deposit statements and tax forms. These factors are important because they indicate an individual has made timely payments over time and avoids risk from lending money without knowing how well he or she will be able to make payments down the road—which means lower interest rates and better terms on loans in general.