Have you maxed out your credit cards and missed some payments? It takes a few due date oversights to chip away at your credit score. Once that happens, many doors can shut. You can’t get a low-interest car loan or a platinum credit card from the bank — talk about being in a financial pinch.
Take a minute before you throw in the towel. Even if you have several skipped payments, your credit score can recover. Please make no mistake, and it’ll take some work and time. If you stick with it, you can have financial freedom again. Read through and follow the seven tips below, and you could have a top-notch credit score.
secured credit card. You make an initial deposit or funds transfer, which becomes your credit limit. Then, you use your secured card just like a traditional credit card. Be sure to make on-time payments, and you’ll start to see your credit score climb.
2. Watch Due Dates
Pay attention to bill due dates before getting your payments in on time. Your credit score takes a hit if you don’t get your price early enough. With all that goes on in life, keeping track of those “pay by” dates can be tricky. Set yourself up for success with a tech solution.
You likely already use your smartphone as a calendar, so consider adding a bill payment alert to avoid missing deadlines. Set the watch to ping you a few days before your bill is due, and you can even get your payment in early. Get into this habit and stop worrying about late fees and missed payments. That’s a significant bump to your credit score!
3. Apply for Store Credit Cards
How often have you been offered a credit card application when shopping for clothes or electronics? Almost every time, right? Your first instinct might be to pass but consider filling out the form next time. It only takes a few minutes and can help your credit score rebound by increasing your total accounts. Creditors want to know you can responsibly manage a mix of credit types.
Store cards typically have lower spending limits than bank cards, but keep in mind that interest rates for store cards are higher. Ultimately, the critical thing to remember is getting a store card can be more accessible, which means you can start showing good payment history faster.
one account to manage, the chances you’ll miss the due date are much lower. Consider making things easier on yourself and bundling your debt into one bill.
To be truthful, combining your debt into one lump sum initially shaves a few points off your credit score. However, that doesn’t last long. On-time payments for one bill can kickstart the rebuilding process quickly. Your debt will start to shrink, and your credit score will be on the upswing.
Dealing with your finances can be tricky. It only takes one or two missteps, and you’ll wear credit score handcuffs. While unlocking the shackles doesn’t happen overnight, these steps can loosen the restraints. Soon you’ll have a more robust credit score to help you reach your financial goals.