Top 5 Ways to Boost Your Credit Score!
Having a good credit score is key to a healthy financial life. Your credit score is like an adult report card. It includes the history of all your debts and how you've been paying them. It tells the story of your financial health to potential lenders. Your credit report will dictate if a bank will loan you money and at what cost. But you’re here, which means you probably knew that!
Here are my TOP 5 ways to give your credit the boost it needs:
Pay your bills on-time - This may seem self-explanatory, but there are many people out there who don't take due dates seriously. They pay their bills when they "get around to it." Be mindful of due dates so that you're always paying your bills on time to avoid any dings on your credit report.
Consider Experian Boost - Bills you pay everyday like your rent, wifi, and utilities are usually not reported to the credit bureaus, so you don't get credit for making on-time payments. After a consumer verifies the data and confirms they want it added to their Experian credit file, an updated credit score will be delivered in real time.
Keep Balances Low - Your credit utilization is another important factor in your credit score. It's calculated by adding all your credit card balances at any given time and dividing that amount by your total credit limit. Lenders typically like to see credit card utilizations of 30% or lower. I have seen much larger bumps in my credit when my credit card utilization was under 10%.
Don't open too many credit accounts - Additionally, having too many credit accounts makes you more likely to spend money you don't have! As mentioned before, too many hard inquiries can negatively impact your credit score.
Don't close old accounts - Closing an account may lower your credit card utilization. Why? Because the higher your credit limit the lower your credit utilization rate will be. Additionally, closing old accounts may shorten your credit history.
Adopting healthy financial habits is critical for improving your economics, and reaching the goals you set out for yourself. It is never too late to improve your financial IQ! If you need help meeting your responsibilities and achieving your money goals, click here!
