Just a short four years ago, my finances and credit score were horrible. Multiple bad decisions left me with a credit score that was in the 500’s. As someone who was nearing thirty years old, that was not good. I got a better job and decided it was time to get my credit in order. In January 2015, I officially started working on bettering my credit. By August of that year, my credit score had gone up by 168 points. It was unbelievable. Who knew that by making a few changes that my credit would go up? Today, I want to go over some things that you can do that will help you become creditworthy.
As I stated earlier, I got a better job. Yu should do that as well. I had been working two part time jobs for six months. I wasn’t making enough money to do anything except for getting by. The next job was just what the doctor ordered. I was able to make more money. This was actually the highest paying job that I’ve ever had. My stress levels went down. I was able to start saving money finally. I also devised a plan on what to do with my debt.
Making more money meant that I was able to get current on every debt that I had. I had been months behind on a few of my bills. To have enough money to get current was great. For some of them, it took me a couple of months to get current because I was so far behind. I was able to get there though. I learned that 35% of your credit score is your payment history. That was more than a third of my score. If you aren’t making enough, it’s time to consider getting a better job. More income will help you.
Pay On Time
The second thing that you can do is pay your bills on time. As I stated earlier, there were times where I was late. That was one of the reasons that my score was so bad. Whatever you need to do, make sure that you pay your bills on time.
Stop Using Credit Cards
The third thing that you should do is to stop using your credit cards. I used to use my cards all the time when money was low, which was a lot back then. At one point I was using 95% of my available credit. That wasn’t smart. The credit bureaus don’t like that. You are looked at as higher risk customer. The ideal credit utilization is 30%. I was nowhere near that amount, so I stopped using my cards. If you’re in a similar situation, you should stop using yours as well.
Doing those three things that I discussed above will help you become more creditworthy. You just have to have a little discipline. I know that anybody can do those things. I was horrible with money a few short years ago. Now, I’m not. Don’t let your past be an excuse. Decide that you want a better score and make it happen.
What is your excuse?
Jason Butler is an Atlanta native, as well as businessman, blogger and teacher. Not only is Jason a prolific flipper, marketer, writer and side hustler his number of years in higher education and student support have given him expert knowledge in understanding the economics of the student loan industry.