If you want to get a loan, apply for a credit card, or purchase a home, you have to maintain a certain level of creditworthiness. If your score is below the threshold for your financial goals, it’s easy to feel discouraged. However, you can take concrete steps to improve your credit score right away. Here are three of the most effective ways to do so.

3 Ways to Raise Your Credit Score

1. Avoid Late Payments

Banks, credit card companies, and even utility companies report late payments to credit reporting bureaus. Records of these late payments will remain on your credit reports for about seven years, which is why it’s essential to pay your bills on time whenever possible.

If you aren’t able to make a payment on time, ask your lender to forgive the late payment and do your best to provide a valid reason, such as a family emergency. Note that credit bureaus only consider a payment delinquent if it is more than 30 days late.

2. Challenge Reporting Errors

Request a copy of your credit report from the three major reporting bureaus (Equifax®, TransUnion®, and Experian®). Note that you’re entitled to one free report per year.

Once you’ve received your reports, scour them for any incorrect information. Make sure your personal information is accurate and that all of your accounts are included. Look for accounts you don’t recognize or late payments you’re sure you made on time. Accounts that you haven’t used for more than seven years should no longer appear on the report. Challenge any errors in writing, and ask the relevant bureau to remove the erroneous information. Doing so will help improve your credit score.

3. Get a Secured Credit Card

If your credit is low, one of the best ways to improve your rating is to request a secured credit card from a bank or credit card company. Secured cards require a deposit, and they provide a line of credit equal to or higher than the deposit amount. As long as you make regular, timely payments on your charges, you'll slowly build a positive credit history that will help you get a loan or qualify for a traditional credit card.

To get a loan with your newly improved credit rating — whether it's a mortgage, construction loan, or home equity loan — contact Armstrong County Building & Loan Association in Ford City, PA. They’ve served clients in and around Armstrong County for more than 90 years. They also offer check cashing, IRAs, and other financial services. Visit their website to learn more about the company, or call (724) 763-7137 to arrange a consultation and get a loan.