Today we’re here to discuss some of the ways you can repair your credit score. At Cascade Collections we’ve seen all too often what happens when a person’s credit gets ruined. You want to buy a car or a home and you put in your application only to find out you’ve been rejected because of bad credit. It’s a terrible feeling.
In order to help you avoid that situation we’d like to give you a little free advice. The very first piece of advice you need to know is how to manage your credit card debt. You usually need a credit card to help you establish a credit history, but how many credit cards do you really need? It’s a good idea to limit the number of credit cards you get in order to keep yourself in check.
Once you have a few cards (or even just one) you should try and keep your balance low, making payments in a timely manner. Don’t allow yourself to charge more to your card if you know you simply can’t afford what you’re purchasing at the time of purchase.
And, if you have several cards and all of them have small balances, it’s better to go ahead and pay those off. That’s because your score can be lower if you have many credit cards with balances on them. Having lots and lots of balances owing simply doesn’t look good on a credit report.
Watch your applications for loans. The more often you apply for credit, the more your score dips. This happens because there’s an assumption that if you’re applying for credit it means you want to use more credit.
Lastly, and this is deceptively obvious, pay your bills on time. If, month after month, year after year, you’ve got a record of consistently paying your bills in a timely manner, then you’re credit score will reflect that. It seems boring, but it’s very important.