4 Easy Steps To Improve Your Credit

Before you can begin improving your credit, you have to know where you're at. So, if you don't have a recent copy of your credit report, go to annualcreditreport and get your free, credit report.

1. Assessing Your Situation.

Before you can begin improving your credit, you have to know where you're at. So, if you don't have a recent copy of your credit report, go to annualreport and get your free, credit report.

Go through every item in your credit report. Look for anything that doesn't look right. Look at your balances, limits and payment history. It's also very important to look for any addresses you may not recognize because that could be a sure sign of identity theft.

At the same time, you're going to want to go through all your bank statements. This is going to help you in step 3. What you're looking for here is anywhere at all you can start saving money. Look for things like fast food, Starbucks, Video rentals, excessive cell phone bills. Trust me, there's money to be saved there if you're honest with yourself.

2. Challenge Inaccurate Items.

Remember all the stuff you found on your credit report that seemed wrong? Do something about it. Some statistics show that 73 percent of Americans have errors on their credit reports. Are you one of them? Not sure how to dispute? Ask a professional. Whether you do it yourself, or hire a professional credit repair company, just make sure you do something about it.

Most errors cause serious damage to your credit report, and if you allow them to stay, you're probably paying a lot more for everything you do. The law is on your side, make sure you take advantage of it.

3. Pay More Than the Minimums on Your Credit Cards.

Paying the minimum balance will keep you in debt for the maximum amount of time. Paying 25.00, 50.00 or 100 more than your minimums can make a huge difference on the amount of interest you pay.

If you're asking yourself "where am I going to find an extra $100" remember in step 1 we said go over your bank statements?

Your goal is getting your credit card balances below 30% of the limit. That means if you have a credit card with a $1,000 limit, you want to get your balance down to $300. If you're above 30% of your limits, you may see a huge credit score jump once you pay them down below 30%

4. Get Another Credit Card

No, seriously. If you don't have 3 open, good credit cards, you probably need them. Even if they're pre-paid cards, just get them. Good accounts create a counter-balance to your bad accounts. Make all your payments on time and pay off the full balance every month.

That's it. That's the big 4-step plan. Anyone can do it. Most people don't. Be one of the ones who does.