It’s no secret that with the increase in foreclosures, rising credit card defaults and unemployment, many people’s credit scores have taken a hit.  I am not a proponent of taking on more debt, however; we can all benefit from a higher credit score when we apply for a car loan, mortgage or even an insurance policy.  A high credit score simply gives you more options in the financial market place.

Use the following 4 Ways to Boost Your Credit Score and feel free to add more in the comments section.

1) Don’t apply for new credit cards you do not need.  No matter where I shop these days, there are offers for a new credit card.  “Just apply for this card and receive 20% off your next purchase.”  Have you ever wondered why merchants offer these deals?  Because they know most people will never pay off the balance the next month and they will end up ahead if they can get you to take that card out.   No matter how tempting the offer, you don’t need the added temptation that comes with more plastic.

2)  Receive Your Free Credit Report – Go to Annual Credit Report and receive a free credit report from each of the three credit bureaus: Transunion, Equifax and Experian.   Annual Credit Report will allow you to receive your credit report free once per year.

3) Once you receive your free credit report, review it thoroughly for mistakes.  File a dispute with each bureau that reports a mistake.   This usually takes at least 30-60 days but is simple and worth the wait.  Manage this report and do not assume it’s accurate.

4) Pay Your Bills Each and Every Month – If you can’t do this, at least pay the minimum and pay them on time.  This is critical to keeping your scores up.  Over time paying all your bills on time will have a positive impact on your score.

The overall message of this post is to take charge of your financial life.  As ugly as your credit might seem, it won’t get any better with your head in the sand.   Take a look and take action.

Related posts:

1. Credit Suisse Global Wealth Report, Available To Download
2. Pay OFF Credit Card Debt, Getting Into Attack Mode