Credit can seem complicated. Many people think those 3 magic numbers are a mystery, but controlling your credit score is easier than you think! Even if you've had some credit mishaps in the past, here are some tips for nursing that credit score back to health.
Pay Down Your Debt
A contributing factor to your credit score is the ratio of money owed to available credit. The higher this ratio is, the more likely it will negatively affect your credit score. Pay down as much debt as you can each month, or pay the full balance every month whenever possible to keep this ratio low.
Keep Accounts Open
Another factor in your credit score is the length that your account has been open. Keep accounts open and active for as long as possible, even if you use certain credit cards sparingly. An account that's been open for a long time will help improve your credit score.
Pay Your Bills On Time
Delinquent payments can have a significantly negative effect on your credit score. But the opposite is true too. Consistently paying your bills on time will only help your credit score grow.
Re-establish Your Credit
If you've had a history of unpaid debt on other accounts and are looking to improve your poor credit score, a great strategy is to pay off the accounts in question and then start fresh. Open a new account, use it responsibly, and start establishing some positive behavior with your new credit card to help improve your credit.
Know Your Score
In order to see how your credit is improving with the methods above, it's important that you know your score. Take advantage of your free yearly credit report so you can accurately keep an eye on your credit score's health.