HOW TO GET OUT OF THE REVOLVING DOOR OF DEBT AND IMPROVE YOUR CREDIT SCORE
Having a good credit score is very important. These scores take everything into account. It’s kind of like a driving record. These scores don’t just take into account what you are currently doing. They also take into account your past.
Your credit score will look into your past record. It’s going to drag out every dirty thing you have ever done. Sometimes it can be hard to recover from past mistakes. It can be difficult, but not impossible.
As long as you are making an effort to clean things up, your creditor will take this into consideration.
What else can I do to improve my score?
This is a question that we get all the time. There are many answers to this question. Allow me to explain a few of them right now.
GET RID OF THE TROUBLESOME ISSUES
We all have those troublesome issues that crop up in our debt. You know the ones I am talking about. The ones that will not go away, or so it seems. Here’a hint, make them go away.
Take a look at those “types” of debts and get rid of them, once and for all. It might take some extra time, but you will be thankful for it later.
Do you have a few small balances on a few credit cards being spread out? Pay the off! Once you pay them off, cut up the cards. I did this. Once I had a credit card bill totaling $500. I used some extra cash and paid it off.
Now I no longer have to worry about it. You can do the same thing on your end too.
LEAVE THE GOOD STUFF ALONE
What does this mean? It means you should leave the good stuff on your score alone. The good stuff is meant to be there. It’s meant to be a cushion for you. It’s meant to solidify your reputation for the good.
The goal is to get rid of the bad stuff. The bad stuff will go away on its own, Most bad stuff gets removed from your score within seven years, even if it’s not paid off.
This means you should also not call someone up to have it all removed; again, it’s meant to be there for your protection.
YOUR CALENDAR WILL BE YOUR BEST FRIEND
Let’s say you are trying yo finance a loan or something like that. Your best bet is to do it within a short window. Every time you make a hit with a credit application, this hits your account.
If you do it many, many times, this will also hit your score. Your credit score is going to read things as though you are looking for more credit. This is not necessarily a good thing, though some view it as such.
Know when to apply for something and when to back off.
Those of you who have student loans need to be concerned about your FICO score. It all adds. This score will also be tallied on your credit score. Know this going in. If you need to apply for something quick, make sure you take the window. You also need to make sure you only do it “as needed.” Which means only do one application at a time and not that often.
If you “hit the window” every time the window presents itself, your score will know something is up. Please heed my warning on this one. Do not waste time with these choices. You are looking to improve your score, not to make it worse.
PAY EVERYTHING ON TIME
This one can not be stressed enough. Some of you might already know this one, but it still bares repeating.
Paying your bills on time or sooner can make quite the difference with your credit score. Every bill you pay gets reported to your score, including when you pay it. If you are consistently late, this is not going to look good for you.
I am saying this because I have been there too. It’s not pretty. You might be sitting on a bunch of money in savings and looking to make that big investment. If you make one wrong move, this could squash the dream with one swift blow.
While this is very important to save money, even just a little, you don’t want to forget about the bills. Plan things out. Set money aside for the bills and paying off debt. Whatever is leftover you can put into savings. Paying off debt and your regular bills comes first. Think of the extra money as just that, extra.
DON’T OPEN YOUR MOUTH TOO MUCH
What do I mean by this. It’s simple. Never hint at a risk that could prove to be an issue. Unless it comes up as an issue, don’t think of it as one.
There could be certain changes in your money issue that might scare your creditors, but might not scare your score. Unless a dent is actually being made in your score, do not bring it up.
Some like to vomit out more than what is needed. Don’t do this. If your score inquires about it, then you might want to say something. Unless that happens though, you’ve go nothing to worry about.
This might be difficult for some to do. I know I have issues with it sometimes. I sometimes obsess with something until I drive myself crazy. The point is too try not to do this.
Just stay focused on your score and taking care of “needs” that might come up. Aside from these two things, just concentrate on paying your bills and paying down your debt. Your smart spending will reflect in the score.
If you check it every 2 seconds, than you will drive yourself crazy. If you are denied something, have the person show you the results. This way you can pass it on. This will also reflect in your score.
As long as you are being responsible with your money, you have nothing to worry about.
ONE FINAL TIP
Everyone is entitled to access to their score. You can get your scores from the top 3 places, including TransUnion. Space them out though. Do it once every 304 months. This way you can get it done for free. Who doesn’t like free!
I hope these suggestions helped. Just take it one day at a time. Be responsible for everything you do. The rest will take care of itself.