If you are recovering from financial troubles or just want to increase your credit ratings in general, there are some basic steps you can start taking now to make a positive difference. They won’t turn your credit around overnight, but taking these steps sooner rather than later will get you on the right financial path. Do things like:
Understand your score – the first step to making your score grow is understanding what goes into it, and how each of the different factors play into its formation. Your credit history, including your payment history, how much you owe, how much credit is available to you, the length of your credit history and the types of credit you have all appear on your credit report and will influence your score. The two things that influence your credit score the most are the on-time payments of your debts and your available credit balance.
Remember that the length of your credit history matters, so you may want to avoid opening new credit accounts just to increase your available credit or applying for multiple credit cards over a short period of time. Either of these could have a negative effect on your credit score because of the impact of the length of your credit history. Also remember that having too many open accounts will negatively affect your score.
For more information, see the full article, “Five Steps You Can Take to Help Improve Your Credit Score and Creditworthiness” on the Equifax Finance Blog.