Perhaps you overspent and couldn't afford your credit card payments, or maybe you lost your job and found yourself unable to pay. Regardless of why, you may be looking at a poor credit score. Fortunately, credit scores are ever changing and you can improve a poor score. Here are three ways you can rebuild your credit if it is low.
Bring Your Past Due Accounts Current
Your payment history has a huge affect on your credit score. Because of this, late payments and past due accounts will continue to haunt you. If you are looking to rebuild your credit, you have got to get your past due accounts current so they don't continue to drag your score down. You can either settle the accounts for less than you owe on them, though this can negatively affect your score initially, or work hard to pay down what you owe. But getting them out of the past due status is a must if you are looking to increase your score.
Pay Down Your Debt
Another factor that affects your credit score is how much credit you are utilizing. Ideally, you want to use no more than 30 percent of your available credit at any one time. If you are using more than this, your credit score may dip. Pay down your debt so that you are not using more than 30 percent of your available credit at any time to slowly improve your credit score.
Pay Your Bills on Time
The last way to rebuild your credit is to make sure you are paying your bills on time, every time. This is the best way to show creditors that you are taking your score seriously and working to improve it. Late payments will harm you and may show creditors you are struggling or aren't serious about paying your debts. It can be a slow process, but paying your bills on time can help to improve your score over time.
If you have questions about improving your credit score, contact Adam Alexander today!