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5 Steps to the Credit Score of Your Dreams

Thursday, June 19, 2014

Unfortunately, there isn’t a magical, instantaneous remedy for a bad credit score. You’re going to have to work to fix it, but having a great credit score is well worth the effort. If you’d like to improve your score, you can use the tips below to erase bad credit and build good credit.

Habits:

1. Don’t spend money that you don’t have. When you use your credit card, you still need to budget the money that you’ll have until the next paycheck. Don’t spend $6,000 with your credit card when you only earn $5,000. Treats and activities can wait until you actually have money for them. You should only pay for house payments, fuel, and necessary groceries while your finances are tight.

2. Keep your balances low. You should only ever use up to 30% of your credit limit. That means that if your limit is $1,000, you should only use $300 of it. Using a lower percentage of your limit makes you look more responsible to creditors. That being said, you should make sure you have a reasonable limit so that you don’t go over this percentage.

3. Set up payment reminders. You’re not the only one who forgets to pay off your credit card every month. Set up text or email alerts that’ll tell you when your bill is due. Late payments ruin your credit score, but on-time payments improve it.

Debt:

4. Pay off your debts before you do anything else. Again, treats and activities can wait. Begin paying off all of your debts while you spend money only on necessities. Your credit score will improve as you pay off your debts.

5. Don’t move your debt around. Paying off your debt with another credit account might boost your score temporarily, but it will only make things worse for you in the end. Just pay off your debt responsibly.

As long as you follow these tips, your score will slowly improve. It make take months or even years for you to get the credit score that you’ve always wanted, but you will get there eventually.

Contact Us

Are you currently struggling with debt? If you don’t see an end in sight, and if your credit score is taking a nose dive, don’t hesitate to call us. Abakhan & Associates will help you get a fresh start. We’ll help you either file for bankruptcy or structure a plan to help you get out of debt. Call us toll free at 1-877-308-8877 to learn more today! Contact any of our locations in Vancouver, Victoria, Vernon or Surrey.

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