Your credit score can have a big impact on your life. When you have a good credit score, things like bank loans, apartments, and now even mobile contracts become more available to you. If you don't have a good credit score however, you may find that these things are hard to come by. While your credit score may seem like this vague number that you don't have much control over, there are actually a lot of things you can do to improve your score. During those times that you find your score may be lower than you'd like, use the tips below to help you get it back up.
This first tip is an easy one. All you have to do is find out what your credit score is, and what things are factoring into it. You can't go about improving your score if you don't know what it is. Talk to a credit reporting agency, like &&&, and find out what yours is. Most places will give you your first report for free, or for very little. It only takes a few minutes and it is well worth it.
Reduce Your Debt
If you have a lot of loans out, or just a large sum in one loan, it may be hurting your credit score. Your credit score is a reflection of how good you are with money, and owing a lot of it isn't a great sign. See where you owe money and look for ways to pay it off faster. Even just making a slightly larger payment over the minimum each month can go a long way. Talk to your loan providers about getting lower interest rates or consolidation loans and see if that helps.
Be On Time
When it comes to making payments on things, you have to make sure you make them on time. Credit reporting agencies place a lot of stock into how well you make your payments, and missing even a single one can lower your score. The longer you go without missing a payment, the better your score will be. Stay on top of when you have money due, and make sure you have budgeted enough money to cover it so that you can make the payment on time.
Lastly, how you use your credit cards can have a large affect on your credit rating. First of all, if you don't have a credit card, you need to get one. (Click here to learn more about available credit cards.) Credit cards allow you to show that you are responsible at spending credit, and it will increase your credit rating. Without one, credit agencies have no idea what to rate you, and therefore will give you a lower score. Once you have a card, you need to use it well. Overspending will be a red flag for the reporting agencies, but not using it at all will not give them a clear picture on you either. Use your card a couple of times each month, and make sure you pay it off at the end. With occasional spending and on-time payments, your credit cards will be a big boost to your credit rating.