Tips for Improving your Credit Score

When you start digging your way out of debt, you also want to concentrate on improving your credit score. Having a good credit score helps you in many ways: lower interest rates, the ability to get financing when needed and lower rates on insurance.

Find your credit rating

Many companies out there will offer you a free credit report. However they will ask for a credit card and charge you monthly if you do not cancel after thirty days. Use Annual Credit Report, a free site. They will give you one credit report a year at no cost. Check your report for accuracy. Many times there may be a debt on there that does not belong. Clearing this up will help improve your credit score.

Pay your bills on time

Each month make sure you pay your bills on time. Create a calendar whether it is paper or electronic to ensure you know when each bill is due. By doing this one simple task, you will keep your credit score from falling and prevent late fees.

Pay down your debt

While this may be almost impossible, it is necessary. There are a few different theories on paying off your debt. Some believe debt snowballing is the best way to pay off debt. Others believe paying off your highest interest rate credit cards off first. Whichever one you choose, start paying your cards down as quickly as possible. Having too many bills maxed out, lowers your credit rating.

Keep your credit cards open

Contrary to what many believe, do not close your credit cards once they are paid in full. Instead keep them open and it will improve your credit score. This illustrates you have available funds and are able to manage your money.

Do not over apply for credit

In the mail there are always great offers for low interest credit cards. Do not try and apply for every card you are offered. Each time you apply for a loan or credit card because these will show on your credit report. Applying for many cards can make you look financially distressed.


It takes time to improve your credit rating. This does not happen overnight. Be diligent and follow the simple steps above and soon you will see your credit score get higher. This will help you be less stressed and save money with lower interest rates and lower payments.