One unfortunate effect of the ongoing economic recession is that lending companies have begun to impose stricter and more rigid requirements for those who are trying to obtain a loan. Nowadays, more and more people are beginning to discover—albeit the hard way—the importance of one’s credit score in obtaining loans for various purposes. If you are planning to avail of a loan to purchase a house or a car, your three-digit credit score will determine the amount of loan you can obtain and the interest rate that will be applied with this loan. Thus, it is very important that you do what you can to improve your credit score.

Fortunately, there are so many ways with which you can improve your credit score. For example, if you have tons of debt, you might want to work on those first by seeking free debt consolidation help from companies that provide non-profit debt consolidation services. Apart from this, let us take a look at three other ways through which you can improve your credit score.

Check your Status

The first thing you need to do is to check your credit report; this will help you identify problem areas so that you can prioritize which issues should be addressed first. By doing so, you could identify errors in reporting such as “unpaid” debts that you have already paid in full, old debts that should have already been crossed off after seven years, miscalculations, etc. To get an idea about your current credit score, you can use an online credit score estimator. An estimated credit score of 700 and above is, according to FICO (the most commonly used system), reflective of a good credit standing.

Consolidate your Credit Card Balance

Another way to boost your credit score is to reduce your outstanding debts. For example, if you owe several thousand dollars’ worth of credit card debts to various companies, it would be a good idea to consolidate these through a company which offers free debt consolidation help, counseling, and loan packages. By consolidating these debts, you will be able to pay your debts in a more manageable way, thereby ensuring that you can reduce these debts and gradually increase your credit score in the process.

Pay your Bills on Time

A rather simple and obvious approach to improving your credit score is by simply paying your bills on time. If you have had a few late payments in the past, you can still improve on this by keeping a regimen of continuous bill payments so as to improve your credit score. This is another area where non-profit debt consolidation can help you. Once you consolidate your debts, you will be able to lower your monthly payment to a considerably more manageable amount. At the same time, you will also be dealing with just a single monthly payment that you can easily factor into your monthly expenditures. With this streamlined payment process, you will surely be able to pay your bills on time, increasing your credit score as a result.

As you try out these strategies, do not forget to seek additional support, especially from companies that offer free debt consolidation help. They offer more client-friendly terms, provide more comprehensive counseling, and are sincere in helping you improve your credit standing.