5 Ways To Improve Your Credit Score
I came across an informational article on CU Content that I thought I would share with you all.
1. Pay your bills on time.
If you find this to be a challenge, consider signing up for automatic payments. If you are currently struggling to make current and past payments, refinancing your car or home loan to make payments can also be an option. Setting up reminders on your phone can also be beneficial!
2. Pay more than just the minimum payment on your credit cards.
Work on paying down your debt before you acquire any new debt. 30% of your credit score is made up of the amount of debt you have. If you are currently caught up on all your short-payments, why not start chipping at those payments that are going to take years to pay off? Remember there is a penalty in under-paying but never a penalty in over-paying.
3. Pay your credit card bills before they’re due.
This way, more of your money will go toward paying for the month’s purchases instead of interest. If you know you have an incoming payment in a few weeks, it is always a good idea to pay those bills in advance. Your credit score will thank you.
4. Diversify your credit portfolio.
A combination of different purchases will also be helpful in the long run when it comes to your credit. Small purchases like food and gas is easier to manage with a daily card. However, mixing it up with larger purchases like travel and appliances on another card can show to lenders that you a capable of balancing your finances. Do not make only small purchases or big purchases all in succession, a healthy mix is always the way to go.
5. Use your credit account on a regular basis.
This may sound like a tough ask seeing how if you are in debt, making more purchases adds to your expenses. However, if you use your credit accounts more regularly, and consistently make your monthly payments on time, this will show lenders you are becoming a more responsible borrower.Tags: bills, borrower, Credit Card, credit score, lender, payments