How Do I Improve My Credit Score?

Note: The following article should not constitute financial advice. Please do your own research and/or speak with a qualified financial professional for help. 

When working with sellers, we sometimes also help them with buying another house, or finding a place to rent. One of the struggles of many people trying to find new houses is their credit. Credit scores are a controversial topic. One or two missed payments or a short streak of bad luck can affect your credit score significantly for years to come. Below are some tips to help improve your credit. 

Set Up Automatic Bill Payments

This is so important because bills can often be easily missed. One missed bill for even a couple months can wreak havoc on a credit score. Almost all bills these days can be set up online through your bank, or even better, directly with the company. In Philadelphia, PWD, PECO and PGW (the three main utilities – water, electric and gas) all allow for automatic bill-pay. Comcast and Verizon, Philadelphia’s two most common internet and TV carriers, also allow for online automatic bill pay. The same with PSE&G, Jersey Central Power & Light, and South Jersey gas in Cherry Hill and the surrounding South Jersey areas. 

Pay Down Debt As Fast As Possible

This may seem obvious, but so many people do not do this. Instead, they continue to spend their money on other things, or even try to save. The truth it, paying credit card debt down is the best investment you can make, since it usually carries the highest interest rate. And the lower the amount of credit you use, the more your score will improve. 

Keep Up With Utilities 

Utility bills that stay past due eventually will affect your credit score. Not only that, but past due utility bills look bad to a potential new landlord or mortgage lender. Experian boost offers a free service to help improve your credit score by confirming with your utility & internet companies that you are paying your bills on time. 

Keep The Right Amount of Accounts Open

The ideal amount of revolving credit accounts that scorers like to see is around 5. If you have less, it may be time to open up a SMALL loan just to show that you are paying something down each month. Or, if you have been eyeing a certain rewards credit card, open it up with the smallest credit limit and just put a small recurring bill that you pay down each month on it. Or just use it once for lunch and pay it off at the end of the month. Having the right amount of accounts open, not going near the maximum amount of credit, and consistent, on-time payments will improve your score in no time. 

Seek a Service

Some services are available to help repair your credit. There are people or companies that can individually help you get on track. One common example given is Lexington Law.  Most of the time, professional credit repairers are not necessary, but they may be in your individual case. 

Summary

These are just some of the ways to improve your credit score. A quick internet search will show you many more tips & tricks on how to improve your credit score. 

If you are facing foreclosure, considering forbearance, or are in a tough financial spot and would like to sell your property quickly, easily, safely, and for cash, and you live in the Philadelphia / South Jersey area, or its surroundings, give us a call at 215-770-3122 or send us a message anytime. We’d be happy to help!