One of the most common mistakes we see at Square One Credit Management is the assumption that a bad credit score sticks with you for life. This is simply not the case. How quickly you repair or fix a bad credit score is a factor of how willing you are to make some simple changes in your choice of how to handle credit and financial issues in your life.
Keep Up with Payments
Paying only the minimum on credit cards won’t get you out of debt quickly, but failing to pay the minimum amounts can be recorded as a missed payment. It is a wise idea to set up autopay on your credit card account for the minimum balance.
You can always go into the account and pay a bit more as your budget allows. Paying off even a few extra dollars a week will help to pay down the principal, reducing the amount of interest you pay over time. It also helps to boost your credit score in the long run.
Check Your Credit Reports
You are entitled to a free credit report from all three credit reporting agencies each year. It is worth the time to order one every four months and check to make sure there are no errors or omissions on the report. These mistakes can be corrected in your favor, helping to boost your credit score automatically.
Avoid Closing Cards and Accounts
Closing cards and accounts through a consolidation process can be damaging to your credit score. It is often better to make payments over time, which builds your score and demonstrates your ability to manage debt.