4 Ways to Improve Your Credit Score

credit scoreYou’ve purchased a home before, you’ve paid the mortgage, and you have decided to finance another property as well. But maybe your business and issues with your inventory have created a rift in your finances.

Once this happens, it becomes almost impossible to secure a loan or contract with a new vendor … but “almost” is the key word here. There is still hope for those who have bad credit.

Here are four ways to improve your credit rating and keep moving ahead. 

1. Always be “on time”

No longer do you have the luxury of being late on payments. Now that your credit score is low, you have to be on time, every time. You will also need to make all payments, and sometimes even make them early. If at all possible, you can try for an early payoff of the debt.

2. Keep using your credit card

You will want to keep one or two credit cards active to use for gas and other regularly purchased items. Credit card usage gradually raises your credit score every time you use one. Only keep a few and get rid of the rest. Abusing this tactic will only further decrease your score.

3. A secured card

Always use a secured credit card when making card purchases. A secured card will require you to place a rather small down payment for security reasons. If you happen to miss a payment on a couple of occasions, this deposit will serve as a credit saver.

4. Dispute errors

If you feel you have been wrongfully judged by the credit reporting agency or any businesses you have patronized, you can argue for your rights. Sometimes there are also errors in the system that show a much lower score than what should be your correct number. If you feel that you’ve been wronged, you should talk to someone about your credit score immediately.

Your credit score is vital. If you wish to purchase additional property or other substantial items, you’ll want to revive your tainted credit reputation. One way of keeping your credit in line, if you own a warehouse or market, is to keep an inventory of what you have and what you need shipped.

Stay educated, keep moving forward, repair your credit, and try to reach new goals and standards in your life. Good luck!

Posted in: Loans