Are you looking to improve your credit score, but don’t want to borrow any extra money? Perhaps you’re already paying off debts and want to ensure that they are cleared before you borrow any further, or maybe your credit score is too low for you to get any extra credit right now. Either way, many people mistakenly believe that in order to build their credit score, they need to take out more debt and pay it off. However, this isn’t true – there are several things that you can do to help your credit score improve without borrowing a penny. Here are some of the best.
#1. Get a Stable Job
If you are currently unemployed, working erratically, or even self-employed, this could be contributing to your low credit score and bringing it down. Although self-employed people can usually see their credit score improve once their business begins to stabilize, working several different jobs over a short period of time, or being out of work altogether, can have a detrimental effect. Dedicating some time to finding a stable, full-time job will ensure that you have a steady income coming in, which will not only look better on credit applications but also ensure that you have the means to pay off any current debts. Check out Job Application Center for information on applying directly to U.S. employers such as Subway.
#2. Pay Your Bills on Time
When it comes to the factors that affect your credit rating, it’s not just paying off debts that count towards it. In fact, the regular utility bills that you pay for your home each month, such as water rates, gas, and electricity, your broadband and TV bill will also affect your overall credit score. If you miss a payment for a utility bill, then this could show up on your credit score, along with any missed debt repayments, and bring it down. So, ensure that you prioritize paying these bills, as they’re just as important.
#3. Get in Touch with Your Creditors
If you are in debt that you are currently struggling to pay off, then it’s important to be aware that defaulting on payments could lead to serious problems on your credit file, making it difficult for you to get credit in the future. In fact, some lenders will rule out anybody who’s had any past defaults at all, regardless of how long ago it was or even if they’ve since paid off the total amount owed. So, if you are struggling, it’s best to get in touch with your creditors and come to an affordable arrangement, rather than simply not paying anything at all.
#4. Check Your Credit File for Errors
Lastly, it’s not a very common occurrence but bear in mind that errors on your credit file could be leading to an unnecessarily low credit rating. Taking the time to obtain your credit file and check it over for anything that looks amiss is certainly worth your while. Even if you don’t find any mistakes, studying your credit file will help you understand where your problems lie and what to tackle first.
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