HOW TO IMPROVE YOUR CREDIT SCORE IN 6 MONTHS

HOW TO IMPROVE YOUR CREDIT SCORE IN 6 MONTHS

Improving your credit score in a timely manner is very important as it affects your ability to take loans, mortgages and the use of credit cards. It is advisable to improve your credit score as soon as possible, as you may not know the time you will need to borrow emergency money. Your credit score plays a big part when you are borrowing money as it determines whether your lenders will give you money and how much they give you. Here are simple ways of how to improve your credit score in 6 months.

Pay bills on time

Like Scott Hilton Teaches us in Credit Secret, Paying your bills on time will help you improve your credit card score within a very short time. Paying your bills on time simply shows that you are responsible and a sensible borrower. Paying your bills late has a negative impact on your credit score. If you have a problem in making payments on time, it is advisable that you set a payment reminder. Some banks and services may offer payment reminders either through SMSs or email. You can also consider paying your bills automatically through setting automatic payment on your credit cards and bank accounts.

Reduce the amount of debt you owe To reduce the amount of debt you owe, the first this is to avoid taking more loans and stop the use of credit cards. You should also be aware of all the accounts you owe and the amount you owe each account. You should look into all the accounts very well and study them. Know the terms and the interest rates of all the debts you have in each of the accounts. After analyzing your accounts carefully, you should come up with a payment plan. If you cannot come up with a good payment plan, you can seek financial advice from financial experts.

Your payment plan should be in a way such that you pay the accounts in which you owe a lot of money and have high-interest rates first. You will pay the other accounts at a later date as the debts do not accumulate very fast.

Regularly check your credit report

Checking your credit report regularly is also vital when you are looking forward to improving you credit score within a very short time. It very important to ensure that your credit report is accurate, and it does not contain any errors. This is because your credit report is used to calculate your credit score. When you want to borrow money, your lenders will study your financial report very carefully before determining the kind of loan they are going to give you. You should make sure that your credit report does not contain inaccurate data such as late payments and wrong amount of money that you owe different accounts. It is crucial to report and fix any of the errors in a timely manner.

Stop applying for credit

It is advisable that you stop applying for credit for some time when you are trying to improve your credit score in 6 months. Applying for credit will lead you into more debt, and this will have a negative impact on your credit score. Cancelling unused credit cards is also very important as it reduces the chances of you being a fraud victim.

These suggestions on how to improve your credit score in 6 months will prove beneficial to you in the long run.

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