You’re ready to make that major purchase you’ve long planned to do. You know what you want and where to find it. The problem, however, is your poor credit score. Once stores see that your rating is bad, they won’t accept your credit card, and you won’t be able to make that purchase. The best thing to do in situations like this is finding time to fix your credit score and restore it to its good standing. At a loss about how you can do this? Worry not because we have several tips that can be useful for you.
Pay on Time
One of the biggest contributors to a bad credit score is unpaid accounts. If this is true in your case, start paying on time. You need to be sure that all your payments are up-to-date. Even if you have late payments in your record, if they were from years ago, they won’t affect your score anymore. But you have to keep paying on time. Another thing that you can do is pay your dues twice a month instead of just once. You should do this if you want to keep your balance low.
Determine What Contributed to Your Bad Credit Score
Before making another purchase, especially a major one, find time to know what your risk factors are. In other words, determine the contributors to your bad credit score. Do you tend to shop impulsively? How many times in a week do you eat out? How many pairs of shoes do you buy in a month? Once you know what these risk factors are, you can then come up with a plan on how to avoid making the same mistakes again. Find out what a good fico credit score range is and aim for a number you think would work for you.
Settle Outstanding Balances and Then Keep Your Balances Low
If you have outstanding balances, you need to take care of them before using your credit card again. Outstanding balances are also unpaid accounts, but these are the ones you haven’t paid for months or even years. Their total can be way over the roof by now. But if you settle them or negotiate with the bank or any financial entity, you’ll be able to write it all off in no time.