In today’s day and age, a credit score is pretty much a requirement if you want any type of good loans with low interest rates. Unfortunately, many Americans have a good amount of credit card debt. The sad thing is that it continues to rise each and every year, hurting the credit scores of millions of people nationwide. However, this doesn’t have to be you. In fact, there are many ways to improve your credit score. In this article, we are going to be breaking down some of these ways.
If you want a great credit score, you first have to pay off all of your remaining credit card debt. You can either use the debt snowball method or the debt avalanche method for this. Dave Ramsey recommends the debt snowball method but I would recommend the debt avalanche method if you have thousands upon thousands worth of credit card debt. The debt avalanche is where you pay off the debt with the highest interest rate first and then work your way down. I like this method over the other because it will save you money over time.
One of the biggest mistakes that I see new credit card owners make is buying things that they can’t afford on credit. As a result, they don’t make the payment at the end of the month which negatively affects their credit score. Don’t let this be you. I would recommend putting minor expenses like gas and groceries on credit. This way, you will be able to pay the card off very easily and it will build your credit a little.
The next thing I would recommend would be to check your credit report. Sometimes, credit card companies can mess up transactions which can negatively affect your credit score. Combat this by checking your report.
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