How to Fix Your Credit Score: Joseph Rallo’s Practical Tips for Success

Your credit score is a crucial part of your financial health. Whether you’re applying for a loan, renting an apartment, or even seeking a new job, your credit score plays a significant role in the process. If your score isn’t where you want it to be, don’t worry—Joseph Rallo, a financial expert, offers practical tips for fixing your credit score and achieving long-term financial success.

1. Check Your Credit Report for Errors

The first step in fixing your credit score is reviewing your credit report. According to Joseph Rallo, many people don’t realize that their credit reports can contain errors that affect their scores. These errors could include incorrect information about late payments, accounts that don’t belong to you, or outdated personal information.

You are entitled to one free credit report per year from each of the three major credit bureaus—Equifax, Experian, and TransUnion—available through AnnualCreditReport.com. Rallo recommends requesting these reports and carefully checking them for inaccuracies. If you find any errors, dispute them with the respective bureau to have them corrected.

2. Make Payments on Time

Your payment history makes up 35% of your credit score, so Joseph Rallo stresses the importance of paying your bills on time. Late payments, even just one, can have a lasting negative impact on your score. To ensure you never miss a due date, consider setting up automatic payments or creating reminders.

If you’re struggling to keep up with payments, contact your creditors. Many companies offer hardship programs that could allow you to make partial payments or extend the due date. The key is to communicate early and often to avoid missed payments that will harm your score.

3. Pay Down Your Credit Card Balances

Credit utilization—the amount of credit you’re using compared to your available credit—accounts for 30% of your score. Joseph Rallo advises reducing your credit card balances to below 30% of your total credit limit, and ideally under 10%. High credit utilization signals to lenders that you might be overextended, which could hurt your score.

Rallo recommends tackling high-interest debt first, as this can help reduce the overall amount you owe faster. If paying off balances is difficult, consider consolidating your debt with a personal loan at a lower interest rate, which can help you reduce your utilization more quickly.

4. Avoid Opening New Credit Accounts

While it might seem like opening new credit accounts would help improve your credit score by increasing your available credit, Joseph Rallo advises against opening too many new accounts. Each time you apply for credit, a hard inquiry is made, which can lower your score temporarily. Too many inquiries in a short period can signal to creditors that you’re financially unstable, which can further damage your score.

Instead of opening new accounts, focus on managing your existing accounts responsibly and improving the factors that matter most to your credit score.

5. Keep Old Accounts Open

The length of your credit history accounts for 15% of your score, so Joseph Rallo suggests keeping your oldest credit accounts open. The longer your credit history, the better it is for your score. Closing old accounts can reduce your average account age and potentially increase your credit utilization rate, both of which can hurt your score.

If you don’t use an old account regularly, consider leaving it open with a zero balance. This will help you maintain a long credit history without adding new debt.

6. Consider Credit Builder Products

If your credit score is still low, Joseph Rallo recommends considering credit builder loans or secured credit cards. These products are specifically designed to help individuals with poor or no credit establish a positive credit history.

With a secured credit card, you make a deposit that serves as your credit limit. By using the card responsibly and paying off your balance each month, you can begin to improve your credit score. Credit builder loans work similarly, allowing you to make small, manageable payments while building your credit over time.

7. Avoid Closing Unused Accounts

Joseph Rallo also cautions against closing accounts you no longer use. While you may not want to keep unused credit cards open, doing so can help improve your credit utilization ratio and increase the length of your credit history, both of which positively impact your score.

Conclusion

Improving your credit score may take time, but with Joseph Rallo practical tips, you can start making meaningful progress toward better credit health. By checking your credit report for errors, making timely payments, paying down credit card balances, avoiding new credit applications, and keeping old accounts open, you can steadily increase your score. With patience, discipline, and a clear strategy, you can fix your credit score and set yourself up for long-term financial success.