If your credit worthiness and score isn’t where you need it to be, it may feel like it takes a century to move it up. We all wish to have an excellent credit score so that we can qualify for the low-interest loans offered by lenders. A credit score that is below 720 is considered as a bad credit score, and you can only be eligible for the bad credit loans Canada. However, improving your credit score doesn’t have to be a complicated and stressful process. With just a few simple actions, you can easily boost your credit score in a few months. Follow these simple tips to increase your credit score in less than six months.
Scrutinize Your Credit Report for Errors
If you want to improve your credit score, you will have to pull your credit score and have a look at it. That is where your journey to a higher credit score is going to begin. Look for anything that is questionable in your credit report and follow it up. If you suspect that there is an identity theft issue, contact the appropriate law enforcement agency. If you see anything on your credit report that you don’t recognize, don’t keep quiet and think that you have been a victim. This could be a simple error that can be fixed quickly and help you improve your score.
Understand Your Credit Utilization
Credit utilization is the most critical factor in your credit score. This is simply the ratio between your available credit and your used credit. In simple terms, it is the ratio between your credit limits and credit balances. You have to maintain a debt utilization ratio of under 30 percent if you want to improve your credit score. Zero percent credit utilization is also a bad thing for your score so don’t think of paying down your credit card debt and never using it again. To build your credit score, maintain your credit utilization of between one and 20 percent.
Deal with All of Your Past- Due Bills and Stay on Top of Payments
No magic is going to move your credit score up unless you are paying your bills on time. Your payment history also plays a significant role in influencing your credit score. If you have any unpaid bills, call the creditor and arrange to pay as soon as possible. Once you have paid, request the creditor to report your payment to the credit bureau so that the defaulted payments no longer appear on your credit report. Focus on paying your bills on time so that you offset the negative marks on your report with more recent positives.
Don’t Give Up
Finally, the only reason why this process will work isn’t that the experts said so but because you pushed on and never gave up. Sometimes you can feel hopeless when you don’t have the money to settle your bills on time, and every creditor is slapping you with penalties and late fees. The most important thing to do is to evaluate your situation and stay put. Always keep in mind that there will be one last approach that will get you out of the position.
