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?

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