Maintaining a positive credit history is the foundation of your overall financial health. Your credit score indicates how responsible you are and your likelihood of paying back a loan. A poor score can impact your life in a variety of ways, making it difficult to secure gainful employment, get approved for a mortgage, or receive an affordable car insurance rate. Fortunately, there are numerous ways to improve your score if it’s dropped far enough to start causing you problems. Here are a few tips for getting your credit back in good standing. 

How to Get Your Credit Rating Back on Track

1. Monitor Your Credit Report Closely 

The first step to revamping your score is checking your credit report. It’s a good idea to do this regularly and look for mistakes that could be dragging your score down, such as late payments, fraudulent accounts, and collection accounts that should have already been removed. If you notice anything wrong, dispute it with the corresponding credit bureau and submit a formal request to fix it. This is one of the fastest and easiest ways to give your score a boost.

2. Pay Your Bills on Time

Payment history accounts for the largest portion of your credit score, so it’s vital to ensure you’re staying on top of your bills every month. Being even just a few days late can put a serious dent in your rating. The longer you continue to make on-time payments, the higher your score will rise. If you have a hard time remembering when all your bills are due, consider setting up payment reminders or an automatic payment plan. 

3. Keep Your Credit Card Balances Low 

The amount of credit you use has the biggest influence over your credit score next to paying your bills on time. It’s generally recommended not to use more than 30% of your available credit, as lenders want to see that you’re living within your means. Carrying large balances will hurt your rating, so it pays huge dividends to keep them as low as possible. You can do this by making multiple payments in one month, asking for a credit limit increase, or getting a personal loan to consolidate debt. 

4. Diversify Your Credit Portfolio  

Having a good mix of credit can help improve your score as well. Using both installment and revolving loans shows you can handle a variety of debt. While you shouldn’t take out a loan unless you have a purpose for it, if you’re thinking about financing a large purchase, this can be an effective way to increase your rating. 

Raising your credit score requires time and patience, but putting in the effort will help place you in a much better financial position. Once you’re ready to prove your creditworthiness and apply for a loan, the professionals at Coastal Finance Company can help. They’ve been working with residents throughout Chatham County, GA, for more than 15 years, providing flexible lending options and favorable borrowing terms with decisions made quickly—often within an hour. They’ll assess your circumstances and assist you in finding or customizing a loan program suitable to your specific needs. Call (912) 303-9979 to schedule an appointment or visit them online to view their qualification requirements.