Ways to Improve an Average Credit Score

With a weak global economy individuals have seen more than their share of credit troubles. Average credit scores in the US ranges depending on which state you live in. Texas, coming in at a low 651, and South Dakota with a high of 710. A credit score of 700 is a great start. It is no shock that states who have seen the highest foreclosure rates like Texas, California and Nevada, are also seeing the lowest average credit scores. A credit score is one of best things to have on your side; when your score is high it is easier to get credit at lower rates and when it is low, one might be denied all together.

All is not lost, even if your credit score is 651 or lower, it can be helped. Realistically speaking, there is no overnight fix for a low credit score but just because one cannot pay their debts off at once does not mean there aren’t a few things we can do to improve our score.

How to Improve Your Average Credit Scores

Start off by reviewing any negative reports showing on your credit history. There may be one or two that you think were reported incorrectly and can be disputed.

  • Stay on top of your credit report and check it annually.
  • Now, take a look at any small balances on cards that you can afford to pay off, do so! Zero balances are a definite plus.
  • Also, if you find yourself struggling with your score already, do not continue to open up accounts even if you can afford it because if you are denied it is reported as an inquiry and too many of these can harm your score.
  • For the accounts you already have, be sure every bill payment is on time. We have so much going on that at times we have the money to pay but we forget or remember when it is too late. One thing to prevent this is to have your payments automatically drafted even if it is just for the minimum due, it will help your credit and save you a late fee.

Lastly, educate yourself on the factors that determine your score, sites like EquiFax can help with this by providing links, tips and resources.

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