20
Jan

When applying for a loan, lenders will want to make sure you will be accountable for the money you borrow. A bank or lender will want to make sure you are a stand-up person before either of them grant you a loan that could be hundreds of thousands of dollars. One of the ways banks and lenders decide if you are worth doing business with is by checking your credit score. A credit score is a numerical expression that assess your credit history. This number is determined by a number of things including how punctual you are when it comes to paying back your credit card bills and your credit card balance. If you have a less-than-stellar credit score, lenders may turn your loan request down. If this happens, there is no need to fret because there are many ways to improve your credit. Some of these options are very common ways to fix credit:

Fix credit report errors
When you are on the road to recovery, you want to make sure your low credit score is not your fault. The first step in this process is to run a credit report. This document will have all your personal and credit information on it. You are allowed a free one every year, so it pays to take advantage of this option. Once you have received your report, scan it for problems or errors. You never know if your personal information was hacked and a new credit account was opened under your name. If you find any errors, contact the credit bureau and dispute the report.

Paying on time
One of the easiest ways to improve your credit score is to make your credit card payments on time. Doing this will not only help you reduce your balance, but it ensures you will not be charged any late fees. A good way to remind yourself your credit card payments are due is to set up a calendar alert on your phone or mark it down in your daily planner. These simple reminders can help you raise your credit score and avoid costly fees.

Trying out a secured card
If want to avoid running up your balance, which can raise your utilization rate, you may want to invest in a secured credit card. This option requires you to put money on your card before using it. For example, if you need to spend $75 on an electric bill, you would put $75 on the card and then use it. This type of card is still counted as regular credit, but helps you avoid having a high balance.