The best ways to improve your Credit Score

 It's possible to improve your credit scores by following a few simple steps: opening accounts that report to the credit bureaus, maintaining low balances, and paying your bills on time. The best way to improve credit scores is by getting credit for paying bills like your cell phone, utilities, and popular streaming service. However, it can be challenging to know where to start. Whether you're building your credit from scratch or rebuilding after your scores have taken a hit, it's essential to learn how your scores are calculated and the primary ways to improve them. Then, you can dive into more detailed guides based on your situation.

Steps to Improve Your Credit Scores

The specific steps that can help you improve your credit score will depend on your unique credit situation. But there are also general steps that can help almost anyone's credit.

Build Your Credit File

The essential first step in building your cheapest credit repair file is opening new accounts that will be reported to the major credit bureaus—most significant lenders and card issuers report to all three. You can't start laying down a good track record as a borrower until there are accounts in your name, so having at least several open and active credit accounts can be helpful.

These could include credit-builder loans or secured cards if you're starting or have a low score—or a great rewards credit card with no annual fee if you're trying to improve an established good score. Getting added as an authorized user on someone else's credit card can also help, assuming they use it responsibly.

Don't Miss Payments.

Your payment history is one of the essential factors in determining the best ways to improve credit scores, and having a long history of on-time payments can help you achieve excellent credit scores. You'll need to make sure you don't miss loan or credit card payments by more than 29 days—payments that are at least 30 days late can be reported to the credit bureaus and hurt your credit scores.

Setting up automatic payments for the minimum amount due can help you avoid missing a payment (as long as you're careful not to overdraft your bank account). If you're having trouble affording a bill, reach out to your credit card issuer right away to try and discuss hardship options.

Catch Up On Past-Due Accounts

If you're behind on your bills, bringing them current could help. While a late payment can remain on your credit report for up to seven years, having all your accounts current can suit your scores. Additionally, it stops further late payments from being added to your credit history and additional late fees.

Talking to a credit counsellor and getting on a debt management plan could be a good option for those having trouble with credit card debt. The counsellor may be able to negotiate lower payments and interest rates and get card issuers to bring your accounts current.

Pay Down Revolving Account Balances

Even if you're not behind your bills, having a high balance on revolving credit accounts can lead to a high credit utilization rate and hurt your scores. Revolving accounts include the cheapest credit repair cards and lines of credit, and maintaining a low balance relative to their credit limits can help you improve your scores. Those with the highest credit scores tend to keep their credit utilization ratio low in the single digits.

There's no set timeline for rebuilding your credit. How long it takes to increase your credit scores depends on what's hurting your credit and your steps to rebuild it.

For instance, if your score takes a hit after a single missed payment, it might not take too long to rebuild it by bringing your account current and making on-time payments. This effect can be even more exaggerated if your late payments result in repossession or foreclosure.

In addition to letting time help you rebuild your scores, you can follow the steps of the best ways to improve credit score mentioned above to add positive information to your credit reports proactively.