Whether we like it or not, credit plays an oversized role in how we interact with each other and the world at large. From an early age, we’re taught to worry about this three digit number and its effect on our dreams and aspirations.

Unfortunately, millions of us fall into the trap of poor finances or decision making and witness our credit scores sink. Credit scores are incredibly easy to ruin but are much harder to bring back up to good standing.

What Even Qualifies As A Good Score?

The first step to improving your credit is understanding what you should be aiming for in the first place. Generally, a score from 580 and above is considered ideal. A score of 800 and up would be considered excellent, but even the most financially-responsible among us may struggle to attain such a lofty score.

If your score is below 580, then you have serious room for improvement. Even if you are above 580, improving your credit could make your life easier and actually save you money down the line.

Make Sure Your Credit Reports Are Accurate

The very first step that you should take when trying to fix your credit is to double check your score. Certain sites will report erroneous scores just to get money from people, which can mess people up when they go to apply for a loan, credit card, and more.

As you do your research on your credit score, be sure to consult various sources to verify your score. If need be, go directly to the three credit agencies and request your score and credit information. That way, you can know exactly where you at and what needs to be done to get to a solid score.

Pay Bills On Time

This may seem obvious, but not paying bills on time is a surefire way to tank your credit. By simply paying your bills on time, you can keep your score from going down and even raise it. While this won’t exactly make your credit shoot up overnight, it can keep your score from tanking any more and can raise it over time.

Lower Your Credit Usage

Your credit usage rate (also known as credit utilization) is another major factor in determining your credit score. The usage rate is basically a ratio between the amount of credit you are using and the total amount of credit available to you. Ideally, you want this percentage to be 30% or less.

If your credit utilization rate is higher than this, then you should work to reduce it by paying off debts and not adding to it. 30% should be the goal you aim for, but lowering your usage by even small amounts could help your credit score improve.

Higher Credit Limit

To help with your credit utilization rate, you could also look into asking for a higher credit limit. With a higher credit limit, you can change your credit ratio and subsequently lower your credit score.

Of course, if you feel like this will tempt you to take on even more debt, then this piece of advice may not be for you. This tip does work wonders, though, so try your best to build the discipline to increase your credit limit.

Keep Credit Cards Open

If you’ve actually paid off your credit card, don’t rush to close out the account. Closing out your account could alter your credit history, which is a major factor in the calculation of your credit score.

Especially if it is an older line of credit, you should be sure to keep it open. Closing an older line of credit will more than likely lower your credit score somewhat. Of course, if you feel like you may be tempted to use that credit, then it may be better to close the line.

Be Patient

In our age of instant gratification, people tend to expect their credit score to shoot up in a week or two. This definitely can happen, but it’s exceedingly rare for credit scores to drastically improve.

Instead, your credit score improvement journey will probably take at least a few months to start showing serious benefits. It’s crucial that you are patient and steadfast in your credit repair journey, even if your scores seem to barely change. If you follow the tips above, then you will see your credit improve.

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Having a low credit score shouldn't stop you from achieving your dreams. At Taxes4Us, we have top-notch credit score management to help you get back on your feet and thrive in the long-term. Contact us today to learn more!