How to Rebuild Your Credit Score after some mishaps

Sherpa Sense:

So you have made some financial mistakes early in life. Now how do you improve your credit score? The number one thing you can do is pay all of your bills on time. Every time. Even if you are still paying off some debt, this is still the thing to do to rebuild your credit.

Let’s Yak:

The largest component of your credit score, 35%, is based on paying your bills on time. So what’s the best way to pay your bills on time? Especially, if you are a busy happening, action oriented, fly by the seat of your pants kind of person.

Get Organized

  • List your bills on an Excel spreadsheet, notebook, or napkin (not recommended).
  • Enter the due dates into your phone calendar with notifications.

Implement a Payment Process for Each Bill

  • Pay your bill online – Auto Pay. Set up bill pay for each repeating monthly bill you have. You will be asked for your bank account information. This allows the company to electronically debit your account for the payment amount. Make sure your account balance is sufficient to cover the payment amounts.
  • Is online banking available with your bank? If so, take advantage of the bill pay feature. Most of your bills can be managed using this service. But remember there could be a few days to transfer the funds so keep this in mind in order to get the bills paid on time.
  • Need we mention the old fashioned way of writing a check? Most landlords require cash, check or money order.

Take a Hike:

Organize and pick a payment process for each bill. What works best for you? Sometimes it’s a combination of the above.  Remember, on time, every time.

Yakety Yak:

Congratulations. You are on your way to an improved credit score. We couldn’t be prouder of you. Now make it a routine to get those bills paid on time. If you find yourself coming up short on money at the end of the month, be sure to ask yourself if you really need something before you buy. 

Peak Lookout:

For more details on this topic, see B&B’s Badass Credit Score – 420 is Not a Smokin’ Credit Score and Enslaved by CC Debt?

  • Show Comments

Your email address will not be published. Required fields are marked *

comment *

  • name *

  • email *

  • website *

You May Also Like

Prevent Identity Theft

Sherpa Sense: Identity theft is a nightmare that can impact you for years. While ...

Easy Ways To Make Extra Money – Part 2

Sherpa Sense: Following up on the success of our first post on easy ways ...

Identity Theft Resolution

Sherpa Sense: While no one ever plans on having their identity stolen, it happens. ...

Investing in Stocks in 4 Easy Steps

Sherpa Sense: Investing in the stock market is one of the best ways to ...

Acting Your Wage

Sherpa Sense: So you work a 40 hour week and you want to spend ...

Budget Ideas for a Weekend Getaway

Sherpa Sense: Taking a weekend getaway is a great way to refresh, and it ...