A strong credit score is crucial to so many aspects of modern life, from obtaining a mortgage and renting an apartment to securing a car loan and opening a new credit card account. If you don't have stellar credit, there are immediate steps you can take to start boosting your score. And, fortunately, it only requires small bookkeeping tasks to improve your credit. Here are a few of them.

How to Boost Your Credit Score

1. Pay Bills on Time

Creditors want to see that you are a trustworthy borrower, so they often look for a history of late or missed payments first. These past-due amounts can stay on a credit report for up to seven years and can account for up to 35% of a total score.

Moving forward, make it a priority to pay all bills on time or before their due date. If necessary, put reminders into your phone calendar to alert you of upcoming due dates. Also, budget accordingly throughout the month so that you have the necessary funds.

2. Keep Unused Credit Accounts Open

If you have credit cards with zero balances that you rarely, if ever, utilize, keep the accounts open. When closing an account, you lose the credit allotted to you, whether or not it is used. This results in a drop in your credit score.

If you can live with the temptation of an untapped line of credit, keep the account open, bearing in mind that you'll still be responsible for any annual fees the issuing bank might charge. It could be a small price to pay for enhancing your credit.

3. Check the Accuracy of Credit Reports

This is more of an administrative task rather than a bookkeeping one. Credit agencies aren’t perfect. They sometimes include erroneous or outdated information on reports, which can adversely affect an individual's credit score.

Check your report with the three primary credit bureaus, Experian®, Equifax®, and TransUnion®. If you see an error, contact the corresponding credit bureau and open a dispute. All three agencies allow individuals to file a dispute online.

For personalized guidance on how to improve your credit, contact Roy E. Carter, CPA, PC in Staunton, VA. In business since 1998, they can advise you on proper budgeting and financial planning, how to tackle and pay down debt, and ways to build credit while lowering your balances. They offer bookkeeping, consulting, tax return preparation, and QuickBooks™ services to individuals and businesses. Call (540) 886-6251 or visit their website to schedule an appointment.