They say the best time to plant a tree was 20 years ago, and the next best time is now. The same goes for your credit score. I know, it’s annoying, and it can be tedious to look into years of financial data, and find out why your credit score is low. But it is also tremendously beneficial.
You can save thousands of dollars just by checking your credit report and fixing the little errors that have slipped in there. They can include anything from a wrong address all the way to identity theft, and people opening lines of credit in your name that they never repay!
Your credit score is like a ticker of your financial health. It should be regularly checked up, and tended to if you see any anomalies.
Why is it so important to keep a healthy credit score? Because the day you need credit, be it to buy a car, a house, go back to college or do home improvements, you don’t want to have to wait for months to get a better credit score. You will want to apply now, and get an answer in a matter of days, or even minutes.
But if your credit score happens to be damaged, it can take months to repair. So prevention is the best way. If that’s too late, and your credit score is pretty low, don’t despair. There are companies that can help you rebuild your credit in a timely manner.
Under your direction, credit repair services will search your credit history and reach out to your creditors to either delete or modify instances in your file that aren’t fair, accurate, or substantiated.
On top of disputing the errors on your credit report, there are other ways to help rebuild your credit score to a healthy level. You can lower the total amount of credit you use by making higher payments on your debt. Creditors like to see a $20 balance on a $2,000 rather than a $1,980 balance on that same $2,000 card.
You can also try to increase your credit line in order to lower your utilization ratio. Asking current creditors for an increase in credit limit is usually pretty straightforward.
Becoming an authorized user on someone else’s card can help you take advantage of their good payment history.
And finally, try to keep using all your cards, even if you put only a small amount on each card every month, it will be better than using just one card and leaving the other dormant. Make sure you program automatic payments to pay your balance in full every month. Or if you can’t afford to pay off the full balance, program autopay for the most you can afford, and at the very least the minimum payment. That will save you a bunch in late fees and benefit your credit history.
Taking care of your credit report is a serious matter that should be tackled as soon as possible, whether you need credit right now or not. At the very least, ensure all the details on your report are accurate, so your credit score is a true reflection of your own financial behavior.