How To Improve Your Credit Score

ContractPhones247 makes it easy for anyone with a bad credit score to obtain a mobile device. However, we assume most of you would prefer to be able to get a mobile contract on your own. In order to do that, you will need to raise your credit score. Raising your credit score takes time, and it is not always easy, but with a little patience and know-how you can start the journey towards raising it today. Below are some tips to help get you started.

  1. Reduce Debt – Debt is one of the biggest factors towards your credit rating. If you owe a lot of money – whether it be a private loan or on your credit card – it will drag your score down. Credit lenders (and mobile companies) are reluctant to give out contracts to anyone who already owes a lot of money. If you can reduce the amount of debt that you have, your credit score should start to rise. Even if you just make a slightly larger payment towards your debt each month, eventually this will add up and help to reduce your overall debt. If you have several loans out, consider getting a consolidation loan in order to make things easier to manage. Lastly, if you owe money with high interest rates on them, try and pay those off with a credit card or loan that has a smaller interest rate. This will help you to reduce your debt faster.
  2. Manage Credit Cards – Your credit cards play a very important role in your credit score. First, credit reporting agencies look to see how long your credit history is. If you are just starting out, chances are that your score will be low. However, if you have had a card open for a long time, it will help your credit rating. This is why it is a good idea to not always close old cards. It is also a reminder that raising your credit score will take time as you strengthen your credit history. Secondly, how you spend with your credit cards will also be looked at. If you have spent a large portion of your credit limit, then it will bring your score down. You want to keep your debt to limit ratio as low as you can. However, spending a lot on your cards is not always a big issue, as long as you make your payments on time. Which leads us to our last point.
  3. On Time Payments – Making all of your payments on time is essential for a good credit score. Whether it is for your credit card or your electric bill, making your payments on time shows that you are responsible. Even one missed payment can have a large impact on your credit rating. The longer you go without missing a payment, or even being late with one, the stronger your score will be. If you have trouble remembering when payments are due, consider setting up automatic payments, or set a reminder in your phone. Do whatever it is you need to do to ensure that all of your payments are made in full and on time.