There are lots of things that we can potentially do that will help us to improve out credit score. It is good to have a think about the different things and what might help yours. You may wonder whether paying off your credit card will help, for example.
Will Paying the Card Help?
Most people that look at your credit score will be looking to see if they can trust you. They will be thinking about whether they will be able to trust you to repay the loan, pay your rent, pay your utility bills or whatever on time and in full. Therefore, it is up to you to provide evidence by way of your credit score, so that they can decide on this. If you are paying your utility bills on time, making loan repayments etc then this could be a good help for them. However, having outstanding credit card debt could put them off. If you are not even making the minimum payments then this will look really bad and you will need to do what you can to change this as soon as you can. Make sure that you set up a direct debit and start making those payments. However, paying back more than the minimum will look better. You will be able to show that you are responsible and are trying to clear your debt.
How Can I Repay?
It can be easier said than done though – trying to find the money that you need to repay the credit card. It is therefore a good idea to think about things that you can change which could help you. The first thing to do is to stop using the card. It will be a lot easier to repay it if the balance does not keep going up all of the time. You will also find that it will be easier to feel motivated if you can see that the balance is reducing. You will have to make some changes though, to make sure that you have enough money to repay it. You might need to think about whether you can spend less money, for example. It could be the case that you might be able to compare prices on various items and make sure that you are buying ones that are not too expensive. You may also need to cut down on the amount of things that you are buying. This can be hard but always thing about whether you really need the items that you are buying and if you think that you are getting good value for money from them. By doing both of these, you could reduce your spending quite significantly and you can use the money that you have saved to pay off some of the credit card. However, you may not feel that this will be fast enough for you or you might feel that you cannot cut back as you are already only spending a bare minimum. If this is the case then you will need to earn more money instead. There are options for this and hopefully you will be able to find something that will work for you. You might be able to sell things that you own and no longer need or want, perhaps at a car book sale or auction either online or offline. You might be able to find some freelance work, either online or offline and you may even be able to work form home. There might be ways that you can make money from your hobby. You might be able to find a second job, perhaps some temp work. It might be possible to work extra hours in the job that you currently do.