How to Improve Your Credit Score When You Are Broke
Google is not known for its emotional intelligence. If you ask Google how to improve your credit score, it will tell you to open one credit card account and take out one non-revolving personal loan and never to use more than 30 percent of the available credit on your credit card. Of course, Google knows everything there is to know about you, so it must know that that ship has sailed. Your credit card has been maxed out since Google Penguin was a fluffy hatchling; sure, you make at least the minimum payment every month, but when the interest charges accrue each billing cycle, the balance goes right back to maxed out. If you tried to apply for a personal loan at this point, the lender would just turn you down because of your low credit score, and to add insult to injury, this rejection would make your credit score even worse. It doesn’t take a search engine to know that paying down your debt improves your credit score. Right now, though, your budget is so tight that you can’t afford more than the minimum payments on all of your debts, if you can even afford that. For help improving your credit score beyond what you can do with the usual methods, contact a Boca Raton credit repair lawyer.
Spend What Little Money Is in Your Account Instead of Making Purchases on Credit
It may be frustrating that your debt balances stay the same despite that you make payments toward them every billing cycle. Look on the bright side, though; at least the outstanding balances are not getting bigger. Your goal now is to hold out until better times when you can afford to pay more than the minimum. If you are not borrowing more, such as by making buy now pay later (BNPL) purchases, you are moving in the right direction. Even if your checking account balance is in the single digits by your next payday, things are getting better if a pay period goes by without you taking on more debt.
Pay Your Bills On Time, or As Close to On Time As Possible
Paying your bills late does not do wonders for your credit score, but it beats not paying them at all. Paying a bill one day late is better than two days late, and two days late is better than three days late, and so on, even if the late fees are painful.
Make Sure That the Credit Reporting Bureaus Know That You Pay Your Bills on Time
Paying your bills on time helps your credit score, but not as much as it should. You do not automatically get credit for paying your rent and utilities on time; it depends on the landlord. Some landlords subscribe to credit reporting apps, but if yours does not, you should subscribe to one yourself.
Work With a Debt Lawyer About Raising Your Credit Score
A South Florida debt lawyer if you are trying to improve your credit score. Contact Nowack & Olson, PLLC in Boca Raton, Florida to discuss your case.
Source:
capitalone.com/learn-grow/money-management/improve-credit-score/
