Have you looked at your credit score lately? When it comes down to it your credit score is the one thing that is standing between you getting what you want financially. It affects whether you will get a loan, a credit card, an apartment or even that job you always wanted.
To put is simply your credit is very important to you and you need to do everything you can to improve it and maintain a high score. So in this article I’m going to give you 3 simple steps you can follow as a plan to improve your credit score.
Step 1: Check Your Scores
The first thing you will want to do is check your score, but you don’t want to check just any score you need to check the right credit score. In fact did you know their are several different types of credit scores? That’s right, you have the FICO score which is the most common, the Vantage Score, the Plus Score, the TransUnion Risk Score, and the Community Empower Score.
However, the most common score used is the FICO score and the best place to go to find these scores is from AnnualCreditReport.com. Here you will be able to obtain all 3 credit reports for free, but if you want your scores you will need to pay an extra fee.
Step 2: Look For Mistakes
The next thing you need to do is look for any mistakes on your credit reports. However in order to know if their are any mistakes on your credit report you will need all 3 reports. The reason for this is because not every company reports the same information.
You might find a mistake on one report and nothing on the other three. For example, if one of your credit reports shows that you filed bankruptcy but this is clearly not true you will be able to dispute the claim and possibly improve your score as a result.
However, one thing I should mention is that you can fix mistakes on your credit report but their is no way to fix things that have actually happened, for example filing bankruptcy.
Step 3: Put A Plan In Place
Finally, the last thing you need to do is put a plan in place that will improve your credit score. However, before you just start doing random things its best if you plan things out a bit. One way to do this is to use a credit simulator. A credit simulator is way for you to test out ideas before you implement them, and one of the best places to go for one is CreditKarma.com
Once signed up for an account you can run all kind of different scenarios that will tell you whether it will improve your credit or hurt it. For example, you can see what happens if you would increase your credit limit of one of your credit cards, or pay off your debt, or even take out a new loan.
In the end having a well thought out plan in place will help you improve it much faster.
Now that you’ve got a plan in place you should know that your credit isn’t going to get better overnight. It’s going to take time especially if you’ve made some terrible mistakes in your past. In fact sometimes time is the only cure to fix your credit score. To learn more about ways to improve your credit score click here.