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Improve Your Credit Score

By Leslie Irving, California Business Journal

Something everyone needs to be aware of is how important it is to have a good credit score. Your credit score should be neutral or good, but if it is bad, it can affect things you may not be thinking about right now.

When young, you do not pay much attention to your credit score, which can often work against you. Whether because you forgot to pay off a phone contract, took out a catalog and defaulted payments, or took out a same day loan and did not pay back on time.

There are steps you can take to help improve your credit score to ensure that you have a positive credit score in the future.

Credit Cards

Using a credit builder credit card can help improve your credit score if you use it correctly. If you can get a small credit card that you can use regularly and make regular repayments, you will improve your credit score, and this shows you can loan money and make regular repayments.

Some companies specialize in giving credit cards with smaller balances to those with poor credit to help build their credit score. Alternatively, some companies have credit options available where you will make monthly repayments for a prepaid card that you will receive once you have paid all of the payments.

A pre-paid credit card can help repair your credit score as you make regular repayments towards a credit account.

Loans And Catalogs

Similarly to a credit card, you could open up a catalog account, buy something, and make regular repayments to improve your overall credit score. Catalogs prove that you can purchase something on a credit system and keep up the payments.

Repaying on time is what most banks and mortgage companies will want to confirm, and not repaying on time will heavily affect your credit score. Catalogs can be a place to start, as some companies like Klarna loan money for purchases to people with poor credit. By making the repayments you need to, you are showing yourself to be a safe person to loan money to.

If you need a loan and can make the repayments, same day loan companies can be useful. You will find that the interest rates are higher than the banks offer, but this is because they will lend to those who do not have the best credit scores.

Most same day loan companies will decide based on affordability rather than looking at your credit score. So again, similar to a credit card and catalog, this can be a way to increase your credit score.

Summary

There are many ways to improve your credit score, and for each repayment you make on the option you choose to do, you will slowly improve your credit score. It does, however, take a lot longer to improve your credit score than it does to negatively affect it.

When improving your credit score, it is important that any borrowing you do from any company is something you can afford to pay back over the repayment term. If it is unaffordable, it will negatively affect your credit score.

Remember not to get yourself into more debt than you can afford to pay back and ensure all payments are met; this is how you will improve your credit score.