Many people are looking for quick fixes for their credit score. They want to improve their credit scores in just a few months with the littlest amount of effort possible. However, the very best way to improve a credit score is to do so through continual improvement. When figuring out a person’s credit score, a solid and consistently flag free credit history will secure the best credit score for an individual. Here are a few stalwart methods for continually improving a credit score.
Pay on Time
No matter what, make payments on time. Whether a person has a loan, credit card, mortgage, or insurance, they need to make their payments on time. Sometimes this can be difficult, especially when unexpected expenses such as a broken car, health problem, or loss of a job come along. The best way to ensure that payments are made on time is to set enough money aside to pay all of the bills for at least six months. That way, when rough times come along, a person will be able to continually improve their credit score even though money is thin.
A person should also be sure to monitor their credit report each year. By requesting a free copy of their credit report through participating websites, a person will be putting themselves in a position to catch any errors that may appear in the report. This will help them keep their credit score safely improving.
Manage Credit Cards
People who are looking to continually improve their credit scores will need to manage their credit cards effectively. First of all, they should not have more than five credit cards. If they have more than five, they should cancel the newest cards because they do not want to cancel out the years of solid credit history they have created on their older cards.
Second, if a person has any dormant cards, they should rotate their cards. By using each card periodically, a person will be continually building their credit through each card. However, if they leave the card dormant, they will not be helping themselves at all.
Third, a person needs to avoid maxing out any of their credit cards, even if they plan on paying off the cards on time. The person should rather fill twenty five or thirty percent of each of their cards, and then pay off each card on time. This will help a person to continually improve their credit instead of harm their credit through maxing out their cards.
Don’t Run Credit Too Much
A person that would like to continually improve their credit should not have their credit run at six different car dealerships when they are looking for a car. This is because each dealership will run their credit two to five times, which, when compounded by six different dealerships, will affect the person’s credit score negatively. Instead, a person should shop around for the best loan, or locate the car they want, and then have the dealership run their credit. This is the same for any kind of loan or insurance. A person should shop around, and then have the company check their credit score.
Continually improving a credit score is much more effective than riding a credit score rollercoaster. Not only will people with consistently good credit secure the best interest rates, but they will save themselves time and stress by never having to recover their credit score. Simply by making their payments on time, effectively managing their credit cards, and being smart about running their credit, a person will be safely and continually improving their credit score and avoiding all of the problems that come with fixing bad credit.
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