How To Improve Your Less Than Perfect Credit In 500 Words

CHICAGO, IL, April 21, 2015 /24-7PressRelease/ — By Todd G. Schwartz

“Out of the roughly 220 million Americans that have credit files maintained by the “Big Three” credit (Equifax, Experian, and TransUnion), about 1 out of 5 individuals are considered to have very poor credit, bad credit, or “deep subprime scores,” according to Experian and Lynnette Khalfani-Cox, The Money Coach.

Understanding Your Credit Score:

Your credit score is a number between 300-850 that financial institutions use to assess your creditworthiness, or ability to pay your bills. Income is not a contributing factor in your credit score. So, even if you don’t make a lot of money you can still have excellent credit. The three major credit bureaus collect your credit history and the transactions that make up your score.

Tips To Fix Your Credit Score:

Budget: Take some time and setup a basic budget. It’s very difficult without one to keep track of your finances. I personally use It’s a free budgeting tool that links all of your bank accounts, credit cards and other accounts to help you stick to a monthly budget. Remember the adage, “If you don’t have a plan, then plan to fail.”

Pay On Time:

According to, paying your bills on time is the most important contributor to a good credit score.

Rethink Applying For Credit:

Applying for credit and opening new accounts is viewed unfavorably by the bureaus. I recommend only doing this as needed. Every time you apply for credit at a bank, financing company or even at a store such as a furniture rental company, an inquiry will go on your credit report.

Manage Your Balances:

Keep your balances low on credit cards and other types of “revolving credit”… If all of your available credit is used up, your credit score will be affected. Be aware that simply closing credit accounts can be viewed as both good and bad by the credit bureaus. Although it is good to reduce the number of open revolving accounts on your report, you will simultaneously be decreasing your amount of available credit.

Look For Mistakes:

Most people aren’t aware that you are entitled to one free credit report every 12 months. You can obtain yours at I encourage everyone to check their credit report to make sure there are no mistakes listed, or that your identity has not been compromised According to, nine million Americans have their identities stolen each year. If your information has been compromised, this could be a major reason why your credit score is low.

Be Patient:

As they say, “Rome wasn’t built in a day. ” It takes time to improve your credit score. If you have negative information on your credit report, time is on your side. There is no quick fix.

By implementing these 6 steps into your financial routine, you will start to rebuild your credit and get yourself back on track. Good luck and stay positive!