How To Improve Your Credit Score Essay

Entering the adult world a few people have no clue what a credit score is until it is time to apply for a loan or they need to buy a new car. A credit score is the number lenders look at to approve and decline your application for credit. For example, when searching for a mortgage company to purchase a new home your credit must qualify before you are approved. Credit scores range from three - hundreds in the mid eight - hundreds. Many factors’ contribute to a low credit score, several you have control over and others you don’t. Once your credit score is damaged, you run the risk of higher interest rates for loans, higher deposits, and even being denied employment. To improve your credit score is simple if you follow the correct steps. To improve …show more content…
A household bill consists of mortgage or rent, utilities, insurance, auto loans, and any other expense you are responsible for monthly. Then, you should create a budget to determine how much money per month you have to put towards paying off your debt. After your household bills are up-to-date, you should first pay off debts with high interest rates. Another choice if you have many high interest rate accounts is to consolidate your debt to pay off your balance quickly without accruing more interest charges. Lastly, you should pay off the accounts on your credit report with the lowest balance. Doing so will quickly remove the debt from your report to reduce the number of accounts listed on your credit …show more content…
The first step is to continue paying your bills on time. If you have a credit card account, the payments made should be more than the minimum requirements. Secondly, avoid opening new credit accounts when not required to keep your credit inquiries down. Next, another option is to obtain a secured credit card from your financial institution. A secured credit card is different from a normal unsecured credit card. A secured credit card requires a deposit equaling up to the amount your credit limit. This way you won’t create new debt and you will be rewarded for good payment