Four Ways To Raise Your Credit Score

Whether it be for a bank, landlord, or car company, you won't get very far in major purchases with a poor credit score. For those unfamiliar with credit scores, a credit score is a numerical score based on a person's credit history, to represent the creditworthiness of that person, and the proper information is gathered by credit bureaus. However, there is no need to fret if your credit score needs some help, here are four ways to help improve your credit score.

Timely Payments: This is easily one of the most important and over-looked parts of your credit score improving or failing. Timely bill payments, credit card payments and car payments all matter. With every bill you don't pay your credit score will drop. Always make sure you pay your bills on time, and the longer you successfully pay your bills on time the better your credit score will be. Also, if you do have trouble making ends meet, contact your creditors and they will give you further tips and ideas that can help your specific situation. After time, once you get into a good rhythm and are able to pay off your dues and expenses your credit score will improve.

Revolving cards: If you owe any money because of your credit cards pay them off don't just 'move them around'. Opening new revolving cards that you don't need or closing unused credit cards are both temporary solutions and won't help you long term, in fact the former method could even become another problem that will only add to your stress. Keep balances on credit cards low as this will keep you from having a lower credit score due to outstanding dues.

New Credit: When starting or starting anew, it is key to remember not to overwhelm yourself. Always keep a reasonable amount on your revolving cards so you won't be tempted to simply use the card on your purchases or be tempted to make bigger purchases you normally couldn't afford. This is a trap which leads you to higher debt and the lowering of your credit score. Also, never be afraid to ask for a credit report, it won't affect your credit score if you make sure to order it directly from the credit reporting agency or through an organization authorized to provide credit reports to consumers.

Credit Use: An important part to revolving cards is understanding their use. Many people at first believe a credit card to be a way for them to make bigger purchases faster or not have to worry about making many purchases at once, they either refuse to think about or don't know the repercussions of misusing a credit card. Apply for a credit card only as need, don't open accounts thinking the more you have the better your credit score will be, this is usually never the case. It's perfectly alright to have a credit card, in fact someone without a credit card has a greater risk for poor credit than one who does not, However, be sure to manage your revolving cards(s) responsibly, if you take care of your expenses and managing your bills, your credit score will increase.

A credit score is ultimately very important financially. It is used in the process of purchasing a mobile phone, a car, and even a home. A poor credit score will not help you in acquiring any of these. It even helps you qualify for loans and what the interest rate and credit limit will be. So, make sure that you take every step possible to keep your credit score high, so when you want to finally buy your dream home, it will be there to support you.