6 Tips To Move From A Poor Credit Score To An Excellent One

February 23, 2022 | Daniel Dewitt

man moving poor credit score

If you have a poor credit score, it may feel impossible to bring it up a few numbers, let alone a whole 100 points. Although the task certainly is challenging, it is possible to transform a poor credit score into an excellent one, and we will teach you how.

How To Transform Your Poor Credit Score Into An Excellent One

1. Create A Plan

If you want to improve your poor credit score, the first thing you have to do is assess your current situation and create a plan. After all, how can you improve your situation if you don’t know what it actually is?

Evaluate how much debt you are in, your current budget, and anything else related to your credit score. You can always ask a professional for help on this step. Once you know where you are currently, create a plan to figure out how you can improve your credit score and escape a cycle of debt.

2. Pay Bills On Time

One of the first tips to incorporate into your plan is paying your bills on time. If you keep paying bills late, there’s no way for your credit score to improve. Make sure you never miss a bill again by enrolling in automated payments and setting up reminders in your phone’s calendar.

3. Pay Your Bills Twice A Month

To further ensure that you pay your bills on time, pay your bills twice a month, or right after you get your paycheck. This ensures that you do not miss a billing cycle. Plus, you get to pay off more and spread it out over more pay dates.

4. Pay Bills Strategically

It isn’t enough to just pay your bills. Instead, you should have a plan for how you pay off your bills. There are many debt payment plans that you can opt for. One of the most popular is the snowball method.

Begin by paying off the smallest of all your loans as quickly as you can. While you’re paying off that loan, pay the minimum on your other bills. Once you pay off the first small loan, move on to the second one until you eventually pay off all your accounts.

5. Ask For A Higher Limit

Something that many people do not realize is that their utilization rate affects their credit score. Utilization rate refers to how much money you are borrowing out of the amount you are allowed to borrow. For example, if you have a credit limit of $1000 but only have used $100, you have a utilization rate of 10%.

You always want to shoot for a utilization rate at or below 30%. This will reflect positively on your credit score. If you go over 30%, your credit score will not go up as high.

6. Diversify Your Accounts

Finally, the last way to increase your credit score is to diversify your account. Diversifying your account means that you are using different types of credit. A diverse credit mix will include an auto loan, student loan, mortgage, and credit cards. Diversification counts for 10% of your credit score. Hence, adding other elements can increase it dramatically.

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Need Money In The Meantime?

If you have a poor credit score, you know how difficult it can be to get a loan. Unfortunately, emergency situations don’t wait, which may render you in need of a loan, regardless of your credit score.

Luckily, there are some options for individuals with poor credit scores. A payday loan, for example, welcomes all credit types to apply. Whether you have good credit, bad credit, or no credit at all, you can apply for a payday loan in Idaho for up to $500 from Idaho Title Loans, Inc.

In order to qualify for a payday loan, you will need a driver’s license or state-issued ID, your most recent pay stub, and a blank check from an active checking account in your name. As long as you have these three things, you can apply for a payday loan.

The process of applying for a payday loan is quick. The in-person process can take as little as 30 minutes, allowing you to complete the application on your lunch break. You can get the money you need as quickly as the same day or the very next day.

Get Your Payday Loan Today!

Don’t let your poor credit score get you down. Instead, transform your poor credit score into an excellent one with the six tips above. Especially if you use these six tips together, you’ll be increasing your credit score quickly.

If you need money in the meantime, consider an Idaho payday loan. A payday loan is an option for individuals with a poor credit score. To get started now, fill out the Idaho Title Loans, Inc. inquiry form and we will call you back shortly to walk you through the rest of the process.