The average credit score in the U.S. is actually surprisingly high at 695.
But for those with a score that falls below the average, rebuilding your credit can be a challenge. Luckily there are several tactics that might prove successful.
If you’re ready to take control of your finances and rebuild credit the right way, keep reading for 5 essential tips.
It’s likely that one of the reasons that your credit dropped, to begin with, was because you missed a few payments.
Whether you skipped paying your credit card for a month entirely or you simply forgot and paid a day or two late, your credit drops as a result.
The first step to rebuilding credit is to never miss another payment. Even if you are only able to make the minimum payment, paying on time will help bolster your credit score.
Put your due dates in the calendar on your phone so that you’ll receive reminders. Or you can even set up automatic payments on your card if you know that you’ll have enough in your checking account to pay.
Another reason that some people find themselves with a poor credit score is that they have a weak credit history. You may not have had more than one credit card in the past, or perhaps you did but no longer have them.
Without a card, it can be tough to put other credit-building tips, like on-time payments, to use. But getting a credit card with a bad credit score can be tough.
Luckily, there are plenty of cards out there that are available to those with little or poor credit. For these cards, you can check the internet to get more info.
If you’re struggling to make your credit card payments on time because you can’t afford the minimum payment, you need a different solution.
One of the biggest problems with credit cards is their high-interest rates. Making the minimum usually means that you’re paying little more than interest each month.
With a personal loan, you can pay off your credit card debt and consolidate your debt into one easier monthly payment with a lower interest rate.
One of the best ways to rebuild credit is to pay off your debts faster. And the easiest way to do this is by finding a side hustle to earn some extra cash.
The internet makes it easy for you to put the skills and knowledge you already have to use to start making money in your free time. Whether you offer your services or sell goods, all you need is a good website to get started!
It’s a common misconception that checking your credit score will cause it to drop.
But the reality is that when you check it yourself using a personal credit check service or a free check from your credit card provider, it’s a soft inquiry. This means it won’t affect your score, as it isn’t reported to the credit agency.
Checking your score regularly will help you stay on track to rebuilding your credit and let you know when something like identity theft might be up.
Now that you know a few tips to rebuild credit the right way, it’s time to get started.
And what better place to start than by jumpstarting a new income stream. Check out our pricing options and start building your own website today!
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