You should fix your credit score after repay all debts. Because, having too much due bills, debts can affect your credit score severely. And several negative listings can lower your score and create bad impact on your financial life as well. You may face problems in future. For instance, you may charge the higher rate of interest if you take out a loan. You could be even denied for applications made on the basis of credit. So, it is quite essential for you to improve your credit score as soon as possible after paying off debts. If you one of them who needs some guidance to rebuild credit score with new hope, then this is a must read.
1. Pay your bills on time
Make sure that you pay all the due bills at the end of the month. If you can’t pay the full amount, then try to pay the minimum on your cards. Thus, you can build a good credit record in the long run. For instance, if your score is 580 now you can raise the points by 18 points on every on time payments each month.
2. Stop using multiple credit cards
Having more credit cards inspire people to shop more. And more shopping means more unpaid bills which you should pay on time. If you miss any payment, then you should pay the late penalties which can make your credit score lower. Because such mistakes and credit record proves you as an irresponsible debtor. Moreover, opting new credit cards can lower your average account age and lower your credit score by 10 % as well. So, think before using credit cards for every purchase. Your one mistake can cost you dearly.
3. Go for a secured card
A secured card is easy to get and you can get even with bad credit. Because the company will charge a certain amount of money as security deposit when you’re buying the card. This type of card will help you to establish a good credit score in near future. Because secured credit card will regularly report to all the major credit bureaus. But, you should maintain the account carefully.
4. Take a close look on your credit report
Review your account on a regular basis. Inform the credit bureaus right way if you find any negative listing in your report.
Final words
The last thing you’ll have to follow that is avoiding further debts. You need to take proper care whether or not you’re making any mistake on your bill payments or any financial step. Carry cash to avoid excessive expenses and credit card bills. Follow a disciplined financial routine to rebuild your credit score with time. Also, you need to maintain the credit limit as well. Make sure that you utilize only 25% of your credit limit while shopping. Crossing the maximum part of your credit limit can blow your credit score into lower scale.