If you need to improve your credit score, your financial situation is probably less than ideal -- and that can be stressful.
What people may not know -- unless they’ve been in a similar situation -- is that money woes can create a lot of stress in other parts of your life.
That stress can stop today, right here, right now.
There are ways to improve credit score that are a lot less painful than the stress of living with debt -- all it takes are 10 easy steps. It won’t happen overnight, not completely, but it can start with these little changes.
1. Order your credit report. This is the first step toward improving your credit score because it gives you an overall picture of your financial life. Your credit report shows how your personal and financial information is being reported by banks and other creditors. Annual Credit Report.com is the only authorized distributor of yearly credit report for free -- other providers could possibly charge a hidden fee.
2. Know your credit score. Your credit score is a numerical rating between 300-850 that determines your financial worthiness in the eyes of creditors. A score in the 700s or more is considered good standing. Knowing your credit score is a starting point toward improving your financial situation.
3. Make a plan to pay off debt. Several factors influence your credit score such as payment history, total debt and outstanding balances versus credit limits. Make a plan by setting payment priorities and a debt free date.
4. Set up automatic payments. Late payments can be a big hurdle when working for an improved credit score. With automatic payments you know your debt is getting paid off regularly and on time.
5. Consider consolidation. Trying to manage several payments a month can be difficult. It can be hard to keep track of how much is due when and to which creditor. If this is the case consider consolidating your debt into one easy monthly payment.
6. Set a realistic spending budget. If you try to pay off more than you can afford you may find yourself short on cash. Then you’ll end up using more credit just to get by each month -- and so the vicious debt cycle begins. Set realistic payments to ensure your balances get paid off and stay that way.
7. Manage your money on the go. We always say it’s a good idea to know what’s happening with your money at all times. Try one of these financial apps to help manage your money from anywhere at any time.
8. Limit your temptation. As your payments are made on time and your balances get paid off your credit score will increase and new credit offers may start rolling in. Just say no because you want to be debt free, not accumulate more debt.
9. Get support. Paying off debt is like any new habit -- you need a support system. We’ll contact you on a monthly basis during the first year to give you a shoulder to lean on and help keep you focused on achieving your goals.
10. Check in to make sure you’re on track. Making a plan is great but it doesn’t mean anything if you don’t stick to it. Check in on your progress and make improving your credit score part of your daily routine.
Maybe you need three of these steps, maybe you need all 10. Everyone’s situation is different and we can help get you on the right track toward improving your credit score and becoming debt free. Call us today at 1-888-919-CESI to speak with one of our certified credit counselors about your individual situation.
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Consumer Education Services, Inc. empowers people to overcome their financial challenges and lead financially-healthy lives.
CESI is NOT A LOAN COMPANY