If you've ever been denied a loan, you know the unpleasant feelings that come along with it. And while some know from the onset that they'll likely be denied a loan due to poor credit, to others, the rejection may come as a complete surprise.
Regardless of how you discover that your credit score is in a dire situation, when the realization hits home, taking action right away can ensure you get back on track toward financial stability. Considering having a good credit score can improve your chances of being able to become a first-time homebuyer, it's important to take the situation seriously.
Looking to improve your credit score quickly? We have four steps that can help get you there!
How to Improve Your Credit Score
- Lower Your Credit to Debt Ratio: Your credit to debt ratio – or the percentage calculated from the amount of debt you have to your credit limit– is a large factor in determining your credit score. Lower the ratio by making it a priority to start paying off your balance and you can exponentially improve your score.
- Pay Your Bills on Time – This may seem like a no-brainer, but for many, paying bills on time is the number one culprit that negatively impacts credit scores and can ultimately lead to credit denials as well as high-interest rates in the future. Strive to pay your bills on time every month – utilize a calendar, digital app on your smartphone, or other time management resource to stay on track.
- Cancel Your Retail Cards – Numerous retail stores hook countless consumers with retail cards, but let's face it, do you really need another credit card to contribute to your debt? If you have several retail cards, consider paying off your balance as soon as possible and canceling a few to decrease your debt and improve your score.
- Review Your Credit Report – Many consumers fail to take a careful look at the one thing that could aid them in improving their credit score – their credit report! Reviewing your credit report regularly can ensure you catch any errors that could negatively affect your score and can serve as a reminder of where your credit currently stands versus where you want it to be.
Start improving your credit score today!