Improve Your Credit in 6 Short Months

If you are trying to improve credit, you are definitely not alone. With damaged credit comes a much more difficult life. You have trouble buying things that you need and living the life that you choose. Therefore, it is in your best interest to take the necessary steps to rebuild your credit. If you stick to a plan and do the right things, you could potentially notice some differences in your credit score in as little as six months. Here are a few steps towards rebuilding your credit quickly. 

Pay Your Bills

Paying your bills on time is the most important thing that you can possibly do towards rebuilding your credit quickly. When credit bureaus calculate your credit score, they look at this factor first. They look at all of your accounts and see if they are reporting that you are late or on time with your payments. If you are on time every month, they will bump up your score considerably. In fact, this one criteria makes up as much as 35% of your credit score. So even if you did nothing else differently, you could potentially see a nice improvement just from this. 

Pay Down Balances

Many people today carry high balances on several credit cards. If this is the case for you, you need to make it a priority to eliminate this problem. Credit bureaus look to see how large your balances are at the end of every month. If the balances are higher than 30% of your credit limit, they look negatively at this. Therefore, it is up to you to get the balance down to less than 30% of your limit. When you max out your credit cards and leave the balances there for extended periods of time, the credit bureaus see you as unable to handle your money. Therefore, lenders will be hesitant to lend you money when your accounts are in this state. 

Get a Mix of Credit

Having a mix of different kinds of credit can actually help your credit score. Lenders like to see that you can handle multiple kinds of credit all at once without problems. Having a mortgage, car loan, credit card, and maybe a store account all in good standing reflects positively on you. 

Resolve Problems

If you have some negative things on your credit report, you need to try to get them taken off. You can do this by working out a resolution with the creditor. You need to contact them and set up a payment plan or some other means to resolve the problem. When you get these blemishes removed from your report, it can make a big difference in the score.

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