Boosting your credit score can sometimes be no easy feat. If you find that your credit score is poor, don’t panic. With the right methods and a little patience, there are ways to make your score better.

Get a Secured Credit Card

Using a credit card the right way will help you establish a positive payment history and put you on track to building a better credit score. When you apply for new credit, you do not want to apply for several credit cards. It will negatively affect your credit score and make it harder to get approved for a home loan. Instead, apply for a secured credit card, which are an easy way to help you build credit when used responsibly.

When you apply for a secured credit card, the bank will require you to put a deposit down on the card. You will eventually receive the deposit back once you prove to the company you are capable of making payments on time and in full. Once you have a secured credit card, the general rule is not to use more than 30% of your allowable credit amount.

Pay All Debts on Time, Every Time

There’s no getting around it: one of the biggest parts of achieving a good credit score is simply making monthly, on-time payments for all of your bills. If you are not good about paying your bills or even paying them on time, it damages your credit and tremendously hurts your credit score. To help you remember to pay your bills on time, set up a reminder on your phone or calendar. There are also many apps, either third-party or through your bank, that will help remind you to pay your bills on time.

Get Credit for the Rent You Pay

Your credit score is determined by what’s in your credit report. And chances are, if your credit is not great, you don’t already own a home. Many people believe renting is throwing your money away but if you can find a company to monitor your rent payments you may be in luck.

Renting tracking services such as Rental Kharma and RentTracker record bills you are already paying such as your rent and put it on your credit report. This helps to build a positive history of on-time payments while paying your rent until your credit is better. It’s important to keep in mind that this is a good additional resource to enhance your credit. However, not all credit reporting bureaus will use this piece to determine your credit score.

Get a Home Mortgage Today

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The above information is for educational purposes only. All information, loan programs and interest rates are subject to change without notice. All loans subject to underwriter approval. Terms and conditions apply. Always consult an accountant or tax advisor for full eligibility requirements on tax deduction.