OPINION – Most lenders or banks usually look at the credit score before they can approve any loan application from their customers. Because of this reason, many people want to learn how they can rebuild their credit as quickly as possible, to improve their chances of getting their application approved.
This article is going to talk about several recommended strategies to manage your finances and ultimately improve your credit. These tip are useful for anyone who wants to have good financial management skills.
How to Improve Your Credit Score
1. Diagnose the credit score
Get a copy of your credit report and diagnose the credit score. You have to know where you are before you can find out where you have to be. There are sites that allow you to get your consumer credit report and offer score estimators at no additional costs. This gives you the flexibility to see potential changes that can be made to your credit profile and improve your score.
2. Reduce debts
Reducing debt can impact your credit score by as much as 30%. It is one of the easiest ways to improve the credit score in a short period of time. There are a lot of debts that can affect the overall finance situation, but reducing revolving debt or credit card debt to below 30% of the limit will have increased the score most significantly.
3. Get back involved in the credit system
When people have experienced a negative impact to their credit, they tend stay far away from credit and only use cash. This sounds like a good plan to have positive credit; however, in order to improve your credit you have to owe someone. As a matter of fact, if you don’t have active credit reporting to the bureaus in a 6-month period, you may lose your score all together. A well managed credit card or small personal loan can keep you involved in credit system and improve your credit score.
Top 3 Financial Management Tools
a. Credit Score & Improvement Plan
Each of the three main credit bureaus offers free sites to get your credit score with an improvement plan and/or in some cases a full report.
- Equifax –www.quizzle.com
- Experian –www.credit.com
- TransUnion –www.creditkarma.com
These financial tools can be used to identify your current credit score and improve your profile effectively.
b. Mint
This is another great application that can be used to manage all assets and debts easily. It is believed to be one of the best financial tracking tools that people can use today. This tool is very flexible for most users. People are able to operate this tool easily without any issues. When people want to manage their budget, cash flow, debts, and some other important things, they should use this tool.
c. Billq
When people have problems with making late payments; they should consider using this tool. It is one of the best billing management tools. People don’t have to worry about paying their bills late. This tool is a great bill reminder that is recommended for most people these days. When people are able to pay their bills on time, they should be able to improve their credit score effectively. They should be able to get debt forgiveness easily when they have some problems with the debts in the future.
These tips and tools will help you manage your finances more efficiently to ensure that you build and maintain a positive credit rating.
For information on financial management contact Anita Johnson at 916-4452-4270 or visitwww.moneywisdomforwomen.net.
For information on credit management contact Chris Bridges at 877-896-2831 or visitwww.creditwithchris.com.