You have probably asked yourself how do i improve my credit, especially if you had problems with the credit score. To improve your credit, you need to know what happened to it in the first place. Making sure you are managing your accounts in the proper way will save your credit score and time. In this article there are a couple of ways that will help you in improving your credit, so you can get better insurance rates and credit offers, and lower mortgage interest rates.

New loan

loanThe big impact on your score can make a consolidation loan as an installment loan. You will pay off your credit, utilization will drop, and all you have to do is keep your perfect payment history on this new loan. It is like getting a new start. Making regular payments on your new loan is the most important thing in this process, so you don’t get into double financial trouble. So, if your financial status is changed for the better, you can take this step and boost your credit score almost immediately.

Negotiation and settlement

If you stopped paying your bill, you could ask creditors to help you erase your debt by agreeing in writing for you to pay off your debt altogether, and them to report your account as paid as agreed. You can also make a debt settlement with your creditors, meaning they will agree in writing that you should pay immediately less than the full amount of your debt, to erase that debt.

Have more credit cards

If you have more than one credit card, but you are not maxed out on any of them, or you are not even in any debt, this will make your credit score higher. But you need to pay your bills on time, every time.

Stop using cards

Yes, having more credit cards will boost your credit score, but not using them will help you even more. Not being in debt on any of your cards will show that you are a responsible user with good financial structure, and will help your credit score even more.

A few more ways…

The other ways you can have a positive effect on your credit are: paying off your medical bills, changing your payment due date to the one that is more suited for you, becoming an authorised user on someone else’s account (they should have a good credit score), regularly checking your annual credit report for any errors because those mistakes can affect your credit score. Also, your score can get boosted if you request a credit limit increase (but not use it, this will make your credit utilization better), pay your basic expenses regularly and on time (rent, utilities…). Your collection account will age off after seven years, and it should be removed from the credit report, and if this is not the case, you should dispute it. To keep your financial status safe, you should know all the correspondence with your creditors, because it is often the case that old paid debts can end up on your bill again.