Ways To Improve Credit Scores

When it comes to purchasing a home, obtaining an auto loan, or being approved for a credit card, a person will need to have somewhat decent credit. Keeping that in mind, it is easy to see how a person's credit score affects many parts of his or her life. In fact, some people even take into consideration a person's credit score when it comes to becoming involved with someone in a relationship. With a credit score having such a large effect on a person's life, most people are always looking for ways to improve their scores.

1) Check Credit Reports: Credit reports and scores are available for free online. By checking credit reports and scores on an annual basis, a person will have a much better chance at recognizing any errors on the report. Having these errors fixed as soon as possible can greatly improve a person's credit score.

2) Use a Monitoring Service: By using a free credit monitoring service, a person is even further able to recognize any errors that become present on a credit report. Monitoring credit also helps a person to see what is negatively affecting his or her credit the most. By identifying this, a person is able to fix the issues.

3) Join an Identify Theft Program: By joining a program that monitors credit reports for identity theft, a person will be much less likely to fall victim to this type of crime. Taking part in one of these programs can become quite expensive; however, by not falling victim to identify theft, a person is better able to keep his or her credit score in good shape.

4) Monitor Checking Account: By monitoring checking account statements, a person will be able to identify negative spending habits. These spending habits can be addressed, which will help a person to improve his or her credit score.

5) Sign Up for Free Text Messages: Credit card companies usually allow credit card holders to sign up for free text messaging services. The card holders can receive free texts when they cross certain spending thresholds; this is very advantageous because it makes it easier for a person to keep his or her debt ratio at a healthy limit. It is very important to remember that keeping a credit card maxed out will negatively affect credit scores. Instead, a person should try to stay at or below 50 percent of his or her credit limit on any given card.

6) Pay Overdue Bills: By contacting the appropriate institutions and getting overdue bills squared away, a person will greatly improve his or her credit score. Most institutions will allow a person to set up overdue bills on a repayment schedule; this way the overdue amount does not have to be paid off all at one time. The main thing to do is to pay on the bills as much as possible, and make sure the institutions are reporting to credit agencies that the bills are being paid off.

7) Develop a Spending Plan: People who are looking to improve their credit scores should develop a spending plan that allows for poor spending decisions to be eliminated. The plan should also make sure that all current bills are being paid on time.


Knowing how to improve your credit record can help a person better his or her odds of qualifying for many important types of loans. Credit scores are affected by many factors, so it is important to keep all of them monitored. It is important to remember that bankruptcies and overdue bills are the worst things that will affect a person's credit score.