Career Advice - A Community Blog

Erik Larson writes about the job market, resume improvement, and career advice

Ideas for Improving Your Credit Score

Written by Erik Larson, Community Blogger | Jan 29, 2018 9:34 PM

It seems that people are much more aware than they ever have been about the importance of having good credit. Every other commercial on television seems to advertise an opportunity to check out your credit score, and credit monitoring is now offered by most financial institutions as well. Yet just because people are alert to what their credit score might be, they don't necessarily know all the best techniques on how to improve it. Either that or they stop at the knowledge of their credit score and don't follow through with the kind of aggressive actions that will help to rectify their problems. Regardless of how it happens, a credit score that is lagging can be a real financial problem.

Remember that many institutions like banks, credit card companies, and mortgage lenders won't consider lending money to people who have low credit scores. In addition, you might not be eligible to get a car or furniture without a loan that might be denied to you because your credit score doesn't stand up to the requirements of the company in question. Now that you have the ability to learn exactly what your credit score is, there's no excuse for not taking that information and running with it by trying to improve by any means necessary. If you can do that, you're likely to see your personal finances take a huge step up in a positive direction.

If you live in an area like Orlando, Florida, you can overcome poor credit by taking advantage of a title loan, which lets you use your automobile as collateral for a quick influx of cash. In cases where that are not available, there are certain ways you can go about improving your credit score.

Pay It Down

Many people get caught in the cycle of simply paying their monthly requirement on their credit score and nothing more. While that's certainly a better alternative than not paying it all, it will take you a long time to completely pay off the card this way because of how much interest is added. Do your best to pay more than you owe each month so that your debt is lowered, thereby raising your credit score in the process.

Watch the Applications

Many people try to alleviate a load of their debt by applying for credit cards that offer balance transfers for lower interest rates. If one potential card doesn't accept, they move on to the next. The problem is that each time you do apply, your credit card is lowered by a significant amount. So multiple applications can really sting.

Keep Them Open

Many people close out a credit card once they have paid it off. But, again, this can negatively affect your score. Having a credit card open with no balance on it is a positive in terms of the determining factors for your credit card. So there's no need to close them out unless you have a compelling reason to do so.

These are just some of the ways you can lower that credit score. If you do, you'll see the positive difference the next time you need to apply for credit for a big, potentially life-changing purchase.

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