Having a weak or low credit score can create challenges in various aspects of your life. Obtaining a loan, credit card or mortgage can be much more difficult for those with a low score. Luckily, there are ways to improve and build by properly using your credit card. It can take some time, but taking the steps to improve or grow your credit score is worth it in the long run.
- Pay on time. Don’t skip or delay your monthly payments on bills like credit cards or loans. If remembering to pay on time is challenging, consider setting up automatic payments.
- Pay more than the minimum. If possible, pay more than the minimum amount owed each month.
- Don’t apply for unnecessary credit. If you don’t need the credit, don’t apply for it.
- Pay more often. If you have the means, consider paying down any debt you have more than once per month.
- Don’t close credit cards. Even if you don’t use an old credit card, don’t cancel it. This can adversely affect your credit score.
- Check your credit report. Know your score and monitor it. Report any suspicious activity immediately.
- Speak to your bank, creditor or debt expert. If you find yourself unable to pay the minimum owed, contact your lender or a debt expert. In some cases, they can help you come up with more manageable ways to pay down your debt.