Want to raise your credit score?
Look, I totally get it! Chances are you have some BIG GOALS in life. Maybe you want to own the home you’ve always dreamed of. Maybe you want to invest in real estate. Whatever it is, chances are having a good credit score will help you out along the way.
To be perfectly honest, raising your credit score will take time and effort. You know those ads you see for people who will raise your credit score quickly if you pay them money? Yeah, don’t do that friend. Instead, you’re going to raise your credit score the RIGHT way. With time and positive changes in your finances, your credit score will go up!
I’m sharing 6 steps you can take to raise your credit score. Slowly but surely, your score will increase. Just be patient and remember that this process takes time.
1. Check your credit report for any errors.
If you haven’t pulled your credit report recently, then you’ll want to do that as soon as possible! Your credit report will give you a history of accounts that you still have open, closed, and accounts that have been sent to collections. When you’re scanning through your credit report, make sure that everything listed is TRUE.
If anyone has ever opened a credit card or loan under your name, you’ll be able to see it listed here. You will want to dispute any charges that are not true so that your credit score isn’t affected. You can easily check your credit report using Credit Karma. They will also keep you updated on your credit score!
2. Get current on your bills.
If you’re behind on any of your bills, you’ll want to make it a priority to catch up! Being current on all your bills is important and shows that you are responsible with your money. To get current on all your bills, make minimum payments on everything else and pay off your overdue bills as soon as possible.
If you’re stuck in the paycheck to paycheck cycle, then it might be time to make changes to your finances! Read about how to pay off debt while living paycheck to paycheck HERE.
Earning extra income is an excellent way to help you catch up on any bills that you might be behind on. Now might be the time to take on a side hustle for a few months. Find something that works for you, even if you just do it part-time. You won’t regret putting in extra work to get current on all your bills.
3. Pay your bills on time.
Late payments and missing payments can cause your credit score to drop. To keep this from happening, make sure that you’re paying your bills on time each month. Staying organized with your finances is KEY when it comes to paying your bills on time. And let’s be honest…the thought of even trying to get organized can be overwhelming! That’s why I created my Budget Life Planner!
It has everything you need to start your very own budget binder. The best part is that you can print this as often as you’d like and use it every single year! Check out my Budget Life Planner HERE.
4. Stay under your credit limit.
As my friend and her husband were working to pay off their credit cards, he would get very excited every time he looked at their account. “Oh! Now we have an even higher amount that we could spend!” It was almost as if he couldn’t wait to max out the credit card again. However, maxing out that card is not going to raise your credit score!
Instead, stay under your credit limit. If you have a credit card with a $5,000 limit then don’t spend the full $5,000. If you aren’t in the place to pay off all your credit cards yet, then see #6!
5. Have a credit card and pay it off each month.
One way to raise your credit score is to consistently pay off your credit card each month. If don’t have a credit card, your credit score won’t improve much. Instead, get a small credit card and charge just one or two things on it each month. Then, pay it off in full every month. Making those payments will help raise your credit score!
6. Pay off debt!
It’s true! The more you pay off debt, the higher your credit score will rise! I want you to take a moment to imagine what your life could be like without that car payment. Think about a life without credit card payments or medical bills hanging over your head. Total up how much money you send to debt each month. Now imagine what you could do with that money instead! I want you to say it out loud. Would you set it aside for your kids’ college? Would you save it for retirement? Maybe you want to take that trip you’ve been dreaming of for years.
When you are debt free, doors open for you that you never thought were possible before. You have more choices on what you can do. I know that paying off debt can seem impossible. I get it. I’ve been there, friend! It can feel like you’re standing at the bottom of a mountain and you don’t even know how on earth to climb the dang thing!
But that’s where I can help! I’ve been there. I’ve climbed that mountain. I can show you the way. In fact, I’ve written several blog posts that can help!
You’ve got this!
You CAN raise your credit score with time and effort. Plus, all of these tips will help you handle your finances even better! But here’s the thing, I know that budgeting and dealing with your finances can be overwhelming. I’ve been there! I’ve sat at that kitchen table with my head in my hands as tears streamed down my face. In fact, I’ve told my husband that I wish we had done things differently. And I also learned how to get organized with my finances and pay off debt.
I’m here to teach you how to budget, make saving second nature, and pay off debt. Sign up for my FREE Budgeting Basics Email Course to receive lessons on how to make this budgeting thing work. I’ll also send you tons of free printables and resources to help you be successful! Sign up below!