A good credit score can be a very powerful tool. From securing loans to buying a house, your credit score can be the key to pursuing significant purchases in your life, helping you build a better and brighter future. The truth is, many people don’t have a perfect credit score, and that is ok. Credit repair specialist Alex Miller has worked with many individuals looking to improve their credit scores and get more out of life. From his personal experience, he explains there are three actionable ways to improve your credit score.
Pay all your bills on time.
A credit card payment that is 30 days late can knock 100 points off your credit score. This is why paying your bills on time is crucial. “Of course, paying your bills on time is ideal. It prevents your score from taking a hit and cultivates good credit habits,” says Alex. “If you find yourself in a position, whether it be due to job loss or even the pandemic, try to work with your creditor first before missing a payment.”
Pay down your balances.
“Paying down your balances is helpful because it lowers your credit utilization ratio,” explains Alex. “Reducing your credit card debt can increase your credit score by roughly 84 points.” It is essential to keep your income-to-debt ratio as low as you can, and keeping a minimal or zero balance is a great way to do that.
Pay in full going forward.
Once you’ve caught up on your bills and paid off your balances, Alex recommends trying to pay your bill in full every month. “By paying your statement in full, you prevent yourself from slipping into overspending habits that could negatively affect your credit score,” states Alex. “You’ve taken the time to build better habits. You want to stay that way.”
In managing his firm, Alex has seen all kinds of credit troubles, but he remains confident that there is no problem too big to fix. Alex elaborates, “Combining improved spending habits with adequate money management is the number one step we can all take to increasing our credit scores.”