4 ways to improve your credit

altIf you have less than perfect credit and are considering a new home purchase, this article is for you!  Learn four simple ways to work towards improving your credit score.

  1. Pay down credit card debt:

Paying down your credit card debt is one of the key steps towards improving your credit score.  First try to pay down your credit cards that are closest to their limit verses paying off a credit card with the highest interest rate.  For long-term personal financial success, keeping your credit card balance at less than 30% of your available credit shows creditors that you responsibly use credit available. 

Keeping your balance at less than 50% of available credit is a must.  This should be the first item you attempt on your road towards improving your credit.

  1. Pay credit card bills on time:

Late payments have a negative effect on your credit.  It sounds obvious, but one of the best ways to improve your credit is to pay your bills on time.  This is a simple step towards improving your credit.  Automatic bill payment is a great resource to have to ensure you never miss a payment.

  1. Avoid closing any credit cards:

You would think that once you have paid off your credit card the best thing to do is cancel the card, but that isn’t advised.  Closing out your credit cards once you have paid them off can have a negative effect on your credit score.  It is actually a better idea to pay off your credit cards, then remove it from your wallet so you do not use it, while leaving the account active versus closing out the account.  This shows on your credit report that you are in good standing with the creditors.  

  1. Get a secured credit card:

If you have bad credit and are looking for a way to rebuild your credit, but are having trouble getting approved for an unsecured credit card, consider applying for a secured credit card.  A secured credit card requires a cash deposit that serves as your credit limit.  The deposit typically ranges from $300 to $500.  This is a great option for rebuilding your credit.

Improving your credit can seem impossible at times, but if you follow these four simple steps you will soon be on your way towards a great credit score.  Developing good credit habits is the key to improving your credit.

Read our article "Clean up your credit" {HERE}.

Read our artilce " Can having my credit checked make my score go down?" {HERE}.

Read our article “How payment history impacts your credit score” {HERE}.

Read our article “Improving your credit rating by paying bills on time” {HERE}.

Read more "Credit Score" articles {HERE}.

Read more "Benefits of Owning" articles {HERE}.

Read more "Mortgage" articles {HERE}.

Read more "Finance" articles {HERE}.

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About Adams Homes
Founded in 1991, Adams Homes is known as the premier home builder and is one of the largest privately-held home building companies in the southeast. Adams Homes has built more than 35,000 new homes since 1991 and builds in seven states including new homes for sale in Alabama, Florida, Georgia, Mississippi, North Carolina, South Carolina and Tennessee with corporate headquarters in Gulf Breeze, Florida.

Discover all Adams Homes’ communities, model homes and homes for sale on our website, www.AdamsHomes.com. We have new homes for sale perfect for the first-time buyer, move-up home buyer, who desires to upgrade to a more accommodating new home, and the empty nester who desires to downsize to a smaller home.

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