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Five Things You Can Do To Improve Credit Score In A Bad Economy

If you follow the right approach and show some great financial discipline, it should not be very difficult to improve credit score even in a bad economy. There can be an array of benefits of raising your FICO score. For example, it will provide you financial security. It will allow you to qualify for lower interest rates on loans and lower premium rates on insurance policies. Besides that, it also results in increased borrowing power. Following are the five things you can do to get things back on the right track.

Find Out Errors In Credit Report And Get Them Rectified

Your low FICO score can be a result of certain errors and mistakes in your credit report entries. So, the first thing you have to do is to review this report thoroughly to find out if everything has been reported correctly on it. If you notice some errors or mistakes, you should immediately contact the bureau and request them to correct those entries. You can speed up the process of correction by providing the bureau some relevant documents (such as a payment receipt) in support of your claim.

Pay Your Bills On Time

If you seriously want to improve credit score, you must pay your bills in a timely manner. Missed or late payments can have severe adverse effects on your FICO score. So, do everything possible to avoid them. If you are using online banking, you can use the free option for automatic bill payments from your account.

Do Not Open New Accounts

This is not the right time to open new accounts. In fact, you should even stop sending applications or requesting quotes for loans. These activities while you are having a low score show financial indiscipline, which eventually further damages your credit worthiness.

Do Not Just Make The Minimum Payments, Pay It Off In Full

Though it is quite tempting to keep paying just the minimum payments every month and avoid the actual , such activities will have negative impact on your credit report. When it comes to making the best use of your strategies to improve credit score, you must think of ways to reduce the debt burden. The faster the debts are paid off, the faster your credit will improve. Focus on paying the high rate debts first.

Do Not Use More Than 50% Of Your Credit Limit

Just because you have been approved a high credit limit, it does not mean you must use it. A good strategy is to keep your card balances below 50% of the limit allowed to you.

Overall, if you implement all these strategies thoroughly, you will definitely be able to improve credit score even in a bad economy.

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Posted in Credit Repair, Improving Credit Score, Payday Loans Debt Consolidation | 5 Comments »

5 Responses to “Five Things You Can Do To Improve Credit Score In A Bad Economy”

  1. Robert says:

    Great Job! I am really influenced with this article. These five points will be really beneficial for improving the Credit Card Score. As per my opinion, Point 3 is very durable because in general, people are so busy in their routine life so they are not able to make their payments at time. Also, we should make any transaction at a single time otherwise it will increase your burden and more interest will be added to your account.

  2. rakson says:

    Very informative and inspirational article ! Definitely if a person keeps a check on his financial deals and transactions done through credit card, he can make the maximum benefit out of it. Borrow and at the same time reap the maximum benefits without being under pressure should be the motto.
    Purchasing or using credit card at the right time or date of the month so that you get maximum days for paying off…if taken care of… really helps.
    Normally when people get credit card statements, they don’t check all the transactions listed…whether it is purchase or payment made at petrol pump or is it certain service tax that has been added. Keeping an eagle eye on all transactions can definitely save you from paying higher as after all the person making computer entries is also human…and to err is human! Many a times we can speak to the customer care dept and ask for waive off if some extra penalties are laid.
    Paying on time can definitely save us money as we don’t have to pay interest on pending amounts. It’s better to have lesser number of cards as then it is easy to keep track. Making full payments is the best policy… it saves you from back log. Our current credit position should be clear if we want to improve our credit scores.
    Few debt gurus recommend to pay off the highest rate card first while few suggest to pay down for the cards that are closest to their credit limits. We should not rack up big balances as the credit scores will be affected. We should not use more than 30 – 50% of a card’s limit. If these things are taken care of … you can definitely add luxury in your life without adding tension in your life by thinking as how we are going to pay off the credits.

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