Personal finance tips and advice on money and investing to increase your financial intelligence and welfare

A Look At The Top 4 Ways To Improve Your Credit Score

In the current economic times, it is very hard for anyone to be sure that they are going to have a secure financial future. Even if you already have a job, the past economic crises should have stirred you to try to ensure that you protect your interests from any future financial problem. The past global economic problems showed that even those with seemingly secure jobs could be candidates for disappointment if they were not careful about how they managed their finances. You can easily lose your job in the current times, so it is a good idea to try to get your finances in good order as soon as possible.

improving credit scores

Source: http://en.wikipedia.org/wiki/File:Credit-score-chart.svg

You can do this using various means, such as making sure that you invest properly and that you save. However, it is also very important that you try to make sure that your credit score is high. This is something that may help you in future, since it will enable you to end up getting a loan if you need one. If you have a very bad credit score, there are a number of things that you can do to correct it. Some of these include:

Make sure that you take care of your bills

In many instances, the issue of bills often has a very huge impact on one’s credit score. If you have a habit of being late on payments or if you have many pending payments, you will find that this will have a negative impact on your credit score. This is something that can be remedied by simply making sure that you clear all such bills. It is also a good idea to adopt the habit of making sure that you always clear your bills on time, and not to wait for creditors to come knocking for you to do this.

Be responsible with your credit cards

The credit card is a tool that can be thought of as a double-edged sword when it comes to your credit score. On one hand, if you make sure that you make the payments on it on time, you will find that it will have a very positive impact on your credit score. In fact, if you use your credit card wisely, you will find that it will have a better chance of single      handedly improving your credit score as compared to other methods. However, if you do not make your payments on time such as when you use the credit card for purchases you cannot afford, it can have the opposite effect on your score. The key is to always be responsible with your card.

Work with a credit counselor

There are times when you will find that your financial life is in such dire straits that you do not know what to do to improve your credit score. In such cases, it is often a good idea to have someone else look at things from a different perspective. A financial adviser can analyze all the aspects of your personal finances, and then give you information on what aspects you can change to ensure that you can change your credit score in the long run.

Pay off your debt on time

When you get any form of credit these days, you can have the option of moving it around from one company to another if you are unsure about paying it. For instance, when you have a mortgage that you think you cannot pay off, it may seem wise to ask another company to buy off the debt, so that you can start paying it off afresh to the new party. You need to understand that this normally does not have an effect on your credit score, so you should not use it as a strategy to improve it. When it comes to debt, the only way to use it as a tool to increase your credit score is by paying it off on time.

All of the measures above require that one should be very disciplined for them to be effective. The key to ensuring that you increase your credit score using any of the means above is by first sitting down and enumerating what your goals are. You can then use one or a combination of the above to attain such goals.

About the Author: Paul Weasel is a remarkable writer and has contributed a number of articles on finance. Visit Our Site to get more knowledge on finance and credits.

  • free credit Scores

    Have you ever considered about including a little bit more than just your articles?
    I mean, what you say is fundamental and all. But imagine if you added some great images or videos to give your posts
    more, “pop”! Your content is excellent but with pics
    and video clips, this website could undeniably
    be one of the best in its niche. Superb blog!

  • Money Advisor

    Hi,

    Thanks for the great tips – will add finance-related videos soon!