Fix Your Credit In 6 Easy Steps

Did you know that Credit Scores are an important statistic in your financial life? If you want a credit card or even a lower interest rate for a loan or mortgage, you will need a good credit score.

For example, a mortgage to buy a house or a loan to open a new business may not be paramount right now, but you will need a good credit rating for your future plans.

Your credit rating is examined by lenders to determine how risky it would be to offer you credit. Credit scores reflect your credit re-payment pattern over time. It’s more likely to be awarded a credit card or loan with favourable terms and rates if you have a history of making payments on time. However, with no credit history or have a negative credit report, like missed payments, it will be difficult for lenders to be assured that you can pay back what you have borrowed.

Don't worry. It's not the end of the world. There are steps you can take to improve your credit rating. While such steps make take some time, the faster you address it, the faster your ratings will increase.

1. Pay your bills on time
2. Pay off debt and keep balances low on credit cards
3. Apply for and open new credit accounts only as needed
4. Do not close unused credit cards
5. Do not apply for too much new credit
6. Dispute any inaccuracies on your credit reports

It may take months or even a couple of years for your credit score to improve, but if you plan on buying a new home, or taking on any other big debt, it’s well worth it.

Wondering where you can find your Credit Score, check out TransUnion. If you see any errors, dispute them with your lenders. Then, focus on paying down any debt while making every bill payment on time. In the meantime, do not apply for any new credit cards or loans or hire purchase.