Low credit scores are nothing to laugh about. Poor credit makes it difficult to get a car loan, mortgage, apartment or credit card, and in some cases, it can even prevent a person from getting a job. Whether it’s from identity theft, overspending or other reasons, here are five steps for debtors to take immediately to improve their credit scores and get things back on track.

Pay Current Balances

It’s important for borrowers to pay their debts each month, and if they can make more than one payment per month, that’s even better. Try to avoid having many accounts with recurring small balances; when they’re paid off, one’s credit score will automatically increase.

Be Consistent

Using credit cards to finance big purchases or allowing a high monthly balance to build up are both warning signs that someone is in financial trouble. With consistent payments, a person can show that they have a plan and they’re sticking to it-;which is something creditors like to see.

Leave Good Debt Alone

If a person has paid debts off before, they should remain on their credit report, because they show that the borrower has used credit responsibly. The more someone can show that they’ve paid their debts, the higher their credit score will be.

Apply Quickly

If someone is looking for credit, they should make multiple applications within a short time rather than spacing them out over a longer period. A credit application causes a person’s score to drop temporarily, but applications done over a long time can turn a small dip into a big crater.

Practice Close Monitoring

It used to be hard to keep an eye on one’s credit score, but it’s easier these days. Everyone can get a free credit report once per year, and credit monitoring services can help as well. Close observation is the only real way for a borrower to know where his or her score is going.

It doesn’t take financial expertise for someone to raise their credit score. With time, effort it’s possible to rebuild credit. 

Source:Written by TESSBRYSON50@gmail.com