With the economy being how it is, many people have gotten themselves into debt and are having a really hard time getting out of it. The good thing is that there are some things you can do to get out of collections and raise your credit score. These things are recommended by some of the biggest collection agencies, such as Pacific Collection Group. If this sounds like you, keep reading to get some tips!
1. Pay Bills On-Time
One of the most important and best things you can do to get out of debt and raise your credit card is to pay your bills on time! Past bills are what results in accounts going into collections, so paying all your bills on time will stop this from happening. To make sure you pay on time, you want to make sure you know when the due date is. Most places will give you about a week before the payment is considered past due, so you should be fine as long as you pay before that date.
2. Make Extra Payments
You also want to make extra payments if you can. Not only will this help you pay down your balances faster, but it will also look good on your credit report. Even if you can only pay a little bit extra, it’s more than just the original payment. It would also look good if you do something as simple as splitting your minimum payment in half. As long as it’s paid by the due date, you’ll be fine. One thing to remember is that some places will have a penalty for paying off early, so make sure you talk with your lender first!
3. Small Number of Accounts
In order to help stop any future debt and get out of current debt, you want to have a small number of accounts. The last thing you want to do is open a bunch of accounts and end up having to pay more each month. Having a few accounts that get paid every month will do a lot better than multiple accounts that don’t. Another thing to think about is to ask for a credit increase on existing accounts instead of opening up a new account, since opening accounts affect your credit score.
4. Check Your Credit Report
Another tip is to make sure you check your credit report. There are a couple reasons why this is so important. The first is because it allows you to see any discrepancies or errors. These types of things can really impact your score, so getting them figured out is crucial. The other big reason why it’s important is because you’ll be able to track your report. For example, you can look at your score before you make a payment, then look at it again after the payment posts. This will let you see how your score is affected.
5. Create a Budget
Finally, try creating a budget. Not only will this help you live within your means, but you’ll have an easier time making your payments each month. Sit down and look at your monthly income and what bills you have, so you know exactly where money needs to go. If need be, you might have to give up some things that aren’t essential, such as streaming services.
These things won’t happen overnight and they’re going to take some work and time. By using these tips given by big collection agencies, like Pacific Collection Group, you’ll be on your way to living a debt free life with a higher credit score!