Credit scores are essential if you want to establish the fact that you are financially healthy. It’s usually a basis if a person is well-off because they are able to pay their bills on time. But not everyone is perfect and can pay their bills, especially with the current situation. So it results in you missing a payment, which can negatively impact your credit scores. And having a low credit score will affect your ability to take out a loan, purchase a car, or rent a new apartment. Fortunately, companies like creditbono can help you build your credit again.
You should know that there are tons of ways to improve your credit. If you think your credit is not as high as you want it to be, you can follow some of these steps to improve your credit score effectively. So read on to find out what some of these steps are.
Pay Your Bills on Time
Sometimes, it’s hard to pay your bills on time if your salary hasn’t arrived yet. It can be hard to budget, especially if you have payments that need to be taken care of. But paying your bills on time will improve your credit score, even if you need to make sacrifices at first. It will be worth it in the long run, especially if you’re looking to take out a loan, purchase a new vehicle, or to apply for a mortgage loan.
Make Micropayments if You Can
Making small payments throughout the month can help keep your credit balances down while improving your credit at the same time. In addition, it will keep your credit utilization low, which influences your credit score directly. So if you’re able to keep your credit utilization low instead of letting it build when you’re close to your payment due date, it will improve your credit score right away.
There Might be a Mistake on Your Credit Reports
If you think that you’ve been doing everything you can on your end to keep your credit score up, then there might be a problem or an error on your credit reports. So the best thing to do is to ask for your credit report every month and check it for yourself. Then, there’s still time for you to dispute it and for the credit card company to correct it. Some common errors would be a payment marked late even though you have receipts to prove that you paid on time. The credit bureaus usually have 30 days to investigate and respond.
Add Yourself as an Authorized User
Before becoming an authorized user of another account, you need to ensure that the primary cardholder has a good history of paying bills on time. You don’t even have to have direct access to the card. You only need to be added as an authorized user for your credit to improve.