If you have a troubled or poor credit score, you're likely familiar with the negative effects it can have on your life. From getting a mortgage or a car loan to finding an affordable apartment, regaining control of your finances is a huge part of putting yourself in better shape financially. But what if I told you that there's an easy way to improve your credit score within a few months? If you create a filing system and set due-date alerts, it'll be easier to budget and pay bills on time--avoiding late payments at all costs is one simple way to boost your credit score.
Good credit scores aren't just helpful in getting loans at better interest rates, they can also help you save money when applying for insurance and renting cars. Here are a few things you can do to start building your credit score.
Set up payment reminders. Regularly paying your bills on time can raise your credit score within a few months. Set up reminders in a planner or calendar, and set up online reminders to help you remember when each bill is due.
Pay attention to credit utilization. Even if you pay off your credit cards in full each month, your credit utilization rate is still significant. Your credit utilization rate is the amount of revolving credit you’re using divided by your available revolving credit. It makes up 30% of your credit score and is often the most overlooked method of improving your score. For most people, revolving credit means credit cards, but it includes personal and home equity lines of credit as well.
