10 Ways To Improve Your Credit Scores

Not everyone has heaps of money lying around or stacked under their bed. Once in a while you will need to take out a loan for a house, open an account or to start a business. For this reason you will need to have a clean credit score record. This is how you can ensure that your credit scores are on point should you need to make a big decision that needs your credit record.

1. Get a copy of your credit report

You can’t start to improve your credit scores until you know exactly what you need to work on. Your credit report includes a list of the accounts that are hurting your credit score. Get a copy of your credit report from each of the three major credit bureaus to find out which accounts need work and which are just fine.

2. Dispute and Follow up a credit report errors

If your credit report contains errors, you have the right to have them removed by writing to the credit bureau or the creditor who listed the account on your credit report. Errors can hurt your credit score more than you think.

3. Avoid new credit card purchases

New credit card purchases will raise your credit utilisation – the ratio between your credit card balances and your credit limit. The higher your balances are, the more your credit score is affected. Rather pay cash for purchases instead of putting them on your credit card. Even better, if you can avoid the purchase completely, you can use that money to reduce your credit card balance. Lowering your balances helps improve your credit score.

4. Pay off due balance

Your payment history makes up 35% of your credit score. The further behind you are on your payments, the more it hurts your credit score. If you have the money, get caught up on your credit card payments before they are charged-off or sent to a collection agency. Talk to your credit card issuer about your missed payments. They may be willing to re-age your account so your credit report shows your account has always been paid on time.


As long as you’re in credit repair mode, you should avoid making any new applications for credit since credit inquiries can hurt your credit score. Opening a new credit account also lowers your average credit age, another action that hurts your credit score.



6. Leave accounts with balances open

You might be tempted to close credit card accounts that have become delinquent, but wait. Before you close any account make sure it won’t negatively affect your credit. For example, closing a credit card with a balance can hurt your credit score if the lender also stops reporting your credit limit. It’s unlikely that closing a credit card will improve your credit score.

7. Make contact with your creditors

Right now they’re certainly the last people you want to talk to, but you’d be surprised at the help you might receive if you call your credit card issuer. If you’re having trouble, talk to your creditors about your situation. Many of them have temporary hardship programs that will reduce your monthly payments until you can get back on your feet.

8. Pay off a debt

The amount of debt you’re carrying is 30% of your credit score. You’ll have to start paying off your debts to improve your credit situation. If you don’t have the money on hand, sell some of your belongings to speed up the process. It will be a sacrifice, but the financial freedom you gain – and the credit score points you gain – will be worth it.

9. Get professional help

Resources, like consumer credit counselling, are available to assist you. If you are overwhelmed by your credit situation, seek professional assistance. You can find a credit counselling agency through the National Foundation for Credit Counselling.

10. Be patient and persistent

Patience isn’t a factor that’s used to calculate your credit score, but it’s something you need to have while you’re repairing your credit. Your credit wasn’t damaged overnight, so don’t expect it to improve in that amount of time. Continue paying your debts on time each month and over time you will see your credit score improve.


Mbali Radebe


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