Whether you are in the market to buy a new house this month, or it's part of your long-term future goals, you should keep an eye on your credit score. It's never too late to turn your credit around. Here are some helpful hints to improve your credit score.
1. Always pay on time! It may seem like a little thing to miss a payment, but those add up to harm your credit score. Check to see if your service has an automatic bill pay if you are forgetful.
2. Keep your credit owed within limits. Do not over spend. A good ratio is not having your unsecured credit outstanding above 50% of your annual salary. Keep your credit within limits.
3. Maintain a good mix of good and bad loans
Home loans and business loans are considered good loans. Personal loans and credit are considered bad loans. Investing in a home loan is a good decision.
4. Pay high-interest loans and small loans first. That way, you don't have interest rates building up. Make a payment calendar, so you can keep track of your payment goals.
5. Close unwanted savings accounts. Never abandon an account without closing them. If you have less than a minimum balance, close it, or bank may charge a maintenance fee.
6. Check your credit reports regularly. Make sure you are using a service that does not flag your checking as an official inquiry.
7. Monitor your information and activity, especially if is a joint account. Have a household budget. Keep track of who is spending, and how much.
8. Negotiate if you cannot pay on time. Take action, do not just not pay.
9. Check your credit score at least one time a year.
You can always improve your credit score. Following these pieces of advice are good steps in the journey to excellent credit.