When it comes to your credit score, it’s the higher the better. Credit scores directly impact the amount your monthly payment will be when you take out a loan for a new car, home improvements or for an emergency. For example, a person with a good credit score over 720 will pay about $1200 of interest on a $10,000 loan. A person with a poor credit score of less than 589 will pay nearly three times that amount on interest over the period of the loan! Follow these six steps to improve your credit score.

Pay Bills on Time

Sometimes paying rent, cable, electricity and all of those other bills can be difficult. But paying all of your bills on time is a great way to improve your credit score. It shows that you can handle your obligations in a timely manner. Get current and stay current in order to have a positive impact on your credit score.

Don’t Write Bad Checks

Bouncing checks can make your credit score drop. It’s like a red flag for banks and financial institutions and it could hurt you when you try to get a loan.

Work with Local Lenders

When it comes to lenders, there’s a big difference between large corporations and locally operated businesses. Large companies will likely just plug your information into a computer to determine whether you are eligible to receive a loan. But at locally owned and operated institution like Regional Finance Corp, people you know and faces you recognize will work with you to help you secure a loan.

Monitor Your Credit Report

Sometimes bad credit is not your fault. At AnnualCreditReport.com you can easily view and print your credit report for free.

Maintain Your Address

Lenders like consistency and stability. One way to show this is by maintaining your current address for consecutive years.

Avoid Letting Accounts Get Turned Over to a Collection Agency

Getting a loan turned over to a collection agency can put a bad dent on your credit score. It can also make lenders leery about loaning you money in the future. So pay your debts diligently.