Tips on Boosting Credit Score

Today’s Money tip offers you tips on how to boost your credit score.

Bad credit is something that can follow you throughout your life – whether you want a new car, home or even a job – chances are, your credit will be checked. If you’ve faltered on a loan or maybe taken on more credit than you can handle, it’s important to realize the consequences of those choices, and how to fix them.

First, start by making a monthly budget so that all of your bills are paid on time. If you can’t afford the entire amount, always be sure to contribute something toward each outstanding debt. Make steady payments and, slowly but surely, you will be debt free. If one debt has a higher finance charge, pay the most toward the balance of that account. So much of your money is going toward fees and is not actually lowering the amount of the debt. But, by paying on the balance you will help to decrease the actual debt itself and not just paying the fees.

Also, don’t close unused cards as a short-term strategy to improve your credit score. Owing the same amount but having fewer open accounts may actually lower your credit score.

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