Whether you want to buy a home or land a new job, a poor credit score can affect just about every area of your life. From personal loans to managing old debts, there are a variety of steps involved in improving credit. Remember, building credit takes time, but practicing these three skills can help you reach your score goals.

3 Tips for Building Your Credit Score

1. Pay-Off Delinquent Accounts

Collection accounts are one of the biggest obstacles for many individuals. But once they're paid off and no longer labeled "delinquent," a credit score begins to rise quickly. In some cases, this process requires a personal loan. This step allows you to pay off the delinquent accounts all at once and consolidate the total amount into a single, manageable payment.

2. Make On-Time Payments a Priority

Every late payment dings your score, and it can show up on your report for seven years. To ensure long-term credit growth, create a budget that ensures every bill is paid on time. If funds are too tight at specific times of the month, work with creditors to move due dates. Not all companies offer this option, but such an arrangement provides you with more financial leeway through the course of the month.

3. Establish Credit

A lack of credit is nearly as detrimental to scores as poor spending habits. The three credit bureaus rely on a variety of information, like the age of open accounts, to determine a rating. Without a reported history available, you're missing some of the necessary factors to achieve a high score. Fortunately, you can begin building your rating by applying for credit, like a secured credit card or short-term personal loan. However, avoid multiple applications because every hard inquiry results in a three to five point drop.

If your credit building strategy involves a convenient personal loan, turn to the professionals at City Finance in McKinney, TX. Apply for a loan today on their website, and get personalized assistance with the process by calling (972) 548-0092.