We all know that it is important to maintain a good credit score, but sometimes we lose track. A poor credit score will make it harder to get a mortgage, auto loan, or even a deal on a new phone.

While it may take some time and effort, fixing your credit score is possible and a financial coach can help walk you through that process. If you want to waste no time and get to it right now, here are a few things that you can do to improve your credit score.

Evaluate Your Credit Report And Set A Goal

Before you try to fix your credit, you need to gauge your current position and set a goal for yourself. According to the Fair Isaac Cooperation (FICO), a credit score of 850 is rated as excellent and a credit scare 300 is terrible; you're somewhere in between. While you don’t necessarily need a perfect score, it can serve as a reference score. Evaluate your credit score over time to see how the moves you make with your credit affect your score. While you can get your credit score from FICO directly at a monthly rate, some financial institution offer it free or charge if you are a client. Ask your bank!

Pay Your Bills On Time

One of the biggest factors that affect and reduce your credit score is late or even missed payments. Therefore, just by making sure that you pay your bills on time, you can start improving your credit score. If you’re forgetful, you may set reminders for deadlines to keep yourself on track. We recommend auto-payments for everything, but you should at least set them for anything that could effect your credit score.

Limit Credit Utilization

Credit utilization can simply be defined as the amount that you use from your credit limit. Using $500 with a $1000 limit means your credit utilization is 50%. Keep this figure as limited as possible. Aim to use only 30% of your credit limit, and you will see your credit score improve.

Try A Secured Card

Secured cards have been known to be effective for those trying to build a better credit history. If you've struggled with a poor credit score before, you can try choosing a secured card to help you out. It is ideal to choose a card that reports to not one or two but all three credit bureaus since it gives you the best chance to improve your credit score.

Final Thoughts

A bad credit score may reflect irresponsible behavior and have undesirable consequences. Fortunately, it is never too late to fix your credit score. With a little effort and a close eye on your expenditures, you can repair your credit score!