When it comes to bad credit, there’s no Olivia Pope to swoop in and save you if your score is low!
If you want to raise your credit score, you’ll need to break out the popcorn and wine yourself and work out a long-term strategy for rehabbing your credit.
Watch Those Credit Card Balances
One major factor in your credit score is how much revolving credit you have versus how much you’re actually using. The smaller that percentage is, the better it is for your credit rating.
The optimum limit is 30 percent or lower across your total credit allotment.
To put it simply, pay down your balances, and keep those balances low.
Eliminate Nuisance Balances Where You Can
If you have small nuisance balances just sort of hanging around with no purpose, it’s best to pay them down in full, if possible. Then, you can focus on just using one go-to card, instead of having multiple cards with balances.
Leave Old Debts On Your Report
Sure, negative items are bad for your credit score, but luckily most of them will disappear from your report after seven years.
However, good debt—debt that you’ve handled well and paid off—gives your credit a boost, and you definitely shouldn’t try to remove it once it’s paid. The longer your history of good debt is, the better it is for your score.
So basically this is the only time you don’t want to put the past behind you.
Questionable ex-boyfriends can stay there though.
Let’s be honest, I could online shop 24/7… but when it comes to loans—specifically home, car and student loans—it pays to do your rate shopping within a short time period. Every time you apply for credit, it can cause a small dip in your credit score that lasts a whole year.
The basic takeaway? Don’t dilly-dally!
Always Pay On Time!
And this might seem obvious, but I need to say it—pay those bills on time. Even with solid savings in place, a drop in your credit score could crush any dream wardrobe goals you might have.
On-time payments mean a good credit score, plain and simple!
With these tips, improving your credit score is as easy as binge-watching all six seasons of “Scandal.”
Can someone just tell me if Fitz and Olivia are ever getting back together before the show ends?
To check your credit score, go to Bankrate.com. If you need a new credit card, check out the average credit card rates below!