Credit Score: How To Improve It

Lending someone money always involves a risk. If a friend asked you for money you would likely say yes or no based on the likelihood of ever getting the money back. Financial institutions work in much the same way. They look at someone’s income and credit score to help determine the risk factor.

We all have times in our lives when things don’t go as planned. We can loose our jobs or be forced to take lower wages. These all affect our financial circumstances and can unfortunately lower our credit scores. Fortunately for us these credit scores are not etched in stone. They are established over a period of time and they can be changed for the better. In this article we will look at some of the best ways to heighten your credit score.

One of the largest factors in determining your credit score is your payment history. It accounts for about 35% of the overall number. To keep your credit score high or get it up a few points you need to start paying bills on time. Concentrate on any bills that are past due, get them current first and work to stay that way. Past due accounts can do a lot of damage to your score.

Most people get into trouble through change of circumstances. They loose their jobs and cannot make the payments that they once made. To make matters worse they ignore credit and debt problems. As soon as you are aware that you may have a problem, talk to your creditors. They may be able to work out alternative arrangements. By lowering your payments it will take longer but there will still be regular, positive activity on your credit score accounts. Don’t ignore the problems in hopes that they will go away, they never do.

If things have been left quite a while then seek advice from a professional. Make sure they are legitimate. Anyone promising to turn your credit around over night is likely not telling the truth.

Your credit score is established over time. We all face difficulties in our lives but these can be overcome with some negotiation and determination. Get in the habit of paying bills on time and stay that way. Clear outstanding accounts and keep them current. Talk to your creditors and seek professional advice if the problems get too advanced. This way you can keep and even raise your current credit score.