4 Simple Ways to Repair Your Credit Score

Although your credit score may not seem significant, it is a lot more important than you would think. This numerical expression of the state of your credit is inspected by lenders to determine whether you are going to be responsible in paying back your loans. Not only will lenders look at this, but it will also play a part in when you are applying for an apartment or even when you are looking for a new job. This is why it is imperative to do your best to repair your credit score if it is lower than you would like it to be. This is not an overnight process, but if you use some of these methods, you will be able to increase it gradually:

Check your credit report
Before you start to repair your score, take a look at your credit report. This document will contain all of your credit history, including your open accounts. Your report can be a great guide to help you gauge what areas of your finances you need to repair.

Inspect your report to see if there are any mistakes, such as incorrect balances or fraudulent charges. Even the tiniest mistake can cause your score to drop a few points.

Pay bills on time
A lender or even a potential landlord will want to know that you are accountable for paying loans on time. And with a good credit score, they will be able to determine that. One of the most common ways you can increase your credit score is by making your payments on time. If you don't, your score will drop and you will be charged a late fee.

Lower your balances
Chances are that if you are in a great deal of debt, you will be paying off these bills for awhile. This will also mean that you will have a high credit utilization ratio – the percentage of your balance compared to your limit. If lenders see that you have a high score, they will rightfully presume you have too much debt to take care of and not issue you the loan you desire. Constantly whittling down your debt will help you decrease this ratio, which you should keep under 20 percent.

Don't open new accounts
You may think that opening up new accounts will lower your utilization rate, but it can actually do more harm than good. Taking on more debt is the last thing you need and lenders may not issue you a mortgage loan if you have too many accounts in your name.