How to Clean up Your Credit History and Improve Your Score

If you have ever experienced that embarrassing moment where your application for credit is denied, then you know how frustrating it can be to know why, or what you can do to improve your chances next time you apply. The truth is that there are things you can do to help the situation, some of which we have below to share.

Clear your debt. That’s the obvious one, and first on this list. If you have any debt in your name then you should clear it as soon as possible. This means cutting up those cards! When a creditor assesses your credit worthiness, they will want to know which other financial obligations you have. The less you have, the more presumed disposable income you also have.

Pay your bills on time. Every time. It doesn’t count it you pay every 4/5 bills on time. If you get a bill, pay it. Don’t wait for the number of reminders and warnings. Credits can see this information, and it affects your credit rating. Be sure to stay on top of your finances. If a bill comes in at the same time as you needing a new outfit, head to the Groupon Coupons page for Lord & Taylor and pick up something cheap, instead of heading to the mall for something expensive.

Once you have a grip on your monthly ongoing finances, it’s important to save. A credit respects somebody who can show a routine of saving money along with the resistance to spending it. If you approach a credit for a line of credit, they are more likely to approve your application if you can show a strong amount of savings. Even if the savings isn’t being used as security, the sheer fact that you have them speaks volumes for your credit worthiness.

Of course, these alone aren’t going to give you the world’s best credit score. They are, however, an excellent start. If you are concerned about your credit situation, sit down and work out your finances with a budget and you will find financial freedom.