Want to raise your credit score? To be honest, it won’t happen right away. But with time and positive changes in your finances, your credit score is likely to go up! Below are 6 steps you can take to raise your credit score. Just be sure to 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! I have an article all about paying off debt while living paycheck to paycheck that you might like!
Earning extra income is an excellent way to help you catch up on any bills that you might be behind on. I even have several articles about different types of side hustles. 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.
- Earn Extra Money And Pay Off Debt With This Perfect Side Hustle
- 5 Side Hustles That Will Actually Make You Money
- 11 Ways To Earn Extra Money
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. I know that some people really struggle with organization. The thought of even trying to get organized can be overwhelming! That’s why I created my Budget Binder Bundle!
If you are struggling with staying organized, then you’ll want to check out my Budget Binder Bundle! It has everything you need to start your very own budget binder. The best part is that you can save the templates and print them each month. Check out my Budget Binder Bundle HERE.
4. Stay under your credit limit.
As my friend and her husband were working to pay off their credit cards, he would become 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. In fact, 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. And I know I’ve said this already, but be sure to pay that sucker off each month! If you aren’t in the place to pay off all your credit cards yet, then see below!
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 is not likely to improve. 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 raise! 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!
- How To Pay Off Debt Fast
- Pay Off Debt When You Live Paycheck To Paycheck
- How We Paid Off Over $111,000 Worth Of Debt
Need help learning how to budget?
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!