If you’re looking to improve your credit score, one of the best things you can do for yourself is make a budget. This way, you can easily see how much money you have to work with each month and ensure that your score doesn’t drop any further.
For starters, make a list of your predictable monthly costs. This would be things like utilities, rent/mortgage payments, car loans, and miscellaneous monthly costs like a cable bill. If you’re in debt, put any montly payments you’re making to creditors here as well – it’s important that you don’t fall behind on these payments. Next, outline costs that may vary from month to month. The big things to consider are groceries, gas and your cell phone plan. Estimating how much you spend on these items each month can help you see which areas you may want to cut back a bit. Finally, try to save a percentage of your paycheck each month. Not only does this give you more resources for the future, but it can help as a cushion. If unexpected costs arise, like medical bills. Saving anywhere from 10 to 20 percent of your paycheck is a great financial habit to get into.
If you stick to this plan, you can ensure that you pay everything on time each month, and thus will raise your credit score over time.