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The best advice for rebuilding credit is of course to manage it responsibly over time. According to what I’ve been reading, here are 3 important things that will help you boost your credit score:
1. Check your Credit Report: You need to make sure your credit report is free of errors. If you find any errors, these can be disputed with any of the credit bureaus.
2. Make your Credit Payments on Time: This is one of the most important factors. Paying late will bring your score down, so set up payment reminders if you have to, so you don’t forget to pay on time.
3. Reduce the Amount of Debt you Owe: If you owe a lot of money stop using your credit cards and start paying them (pay it off instead of moving it around).
Other good tips:
– Keep balances low on credit cards
– Don’t open a lot of new credit accounts too rapidly
Source: http://www.myfico.com/crediteducation/improveyourscore.aspx
If you have any more tips or good articles that can be added to this list please comment
These are really good tips. It says make your payments on time, which of course makes sense, but I have seen some people say pay in full and others say make a little more than the minimum payment. Which is the best strategy?
For me the best strategy is paying in full. You don’t pay any fees if you pay in full so you’re saving money. As you mentioned the most important thing is to pay on time (also, don’t max out your cards).
What if you are close to maxing out one of your cards (unexpected emergency)? And you can pay more then what is due (on some months but not others). How can you get it down to a zero balance but don’t have a way to pay in full?
Well in that case try to keep paying more that what’s due each month and always pay on time. This way you’ll cover more than your monthly fees and will be paying a little bit of your debt each month until paid in full.
Thanks for the advice Fontanman!!
I will keep doing that and hope I can get them paid day before the New Year!
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