If you’ve been burdened with credit card debt thanks to a poor credit score, then it’s vital to know that you’re not alone – more consumers around the world are feeling the harsh pinch of the recession on their finances.
Between escalating job losses, reduced pay and the rising price of gas, your money is probably going to other expenses before you even consider tackling that terrible credit card debt. But, while feeling the financial pinch is certainly no fun, during these uncertain economic times it’s ideal to improve your credit rating as much as possible.
But how can you fight the overwhelming battle against terrible credit, especially when it feels like you barely have enough money to cover your necessities? Simple: follow the example of what millions of others have learned already, and watch your credit score skyrocket!
Enroll In An Automatic Debit Program. Haven’t done this already? If not, you’re really cheating yourself out of a fantastic way to ensure that all of your credit card bills are paid on time, with small effort on your part. Automatic debit takes money for credit card payments out of your bank account, so you’ll always pay your bills on time without worrying about overdue payments and their effect on your credit score. And since your rating is mainly composed of your payment history (35%), it’s an ideal way to get one of the major factors that makes up your credit score down pat.
Don’t Avoid Credit Cards. It may seem like a contradictory thing to do, but when battling against credit card debt, don’t shun all plastic. In fact, keep at least one card with an open credit line around, as a large part of your credit score is determined by your debt to credit line ratio (30%). If your cards are maxed out, rework your monthly household budget to find extra money that you can place towards your cards at the end of the month. You’ll be surprised at how much extra cash you can throw at those annoying balances, which will set you up for a victory against that toxic credit card debt.
Get A Prepaid Credit Card. Can’t get a handle on your spending? It’s vital to have a credit card to boost your score; but, this will do nothing for you if you can’t get a handle on your finances in the first place! Savvy consumers know that when it comes to credit cards, they need a prepaid card that works wonders towards improving credit scores. Prepaid credit cards are viewed as ordinary cards by the credit bureau, so they’ll work hard towards improving your credit score; additionally, you’ll never be at risk of overextending your prepaid card, since you can only spend the balance that’s on there. Expect to place up a deposit to get a prepaid card, as this money will be used in case you max out your limit. It’s a fantastic way to improve your credit score while learning about financial responsibility!