7 TIPS TO BOOST YOUR CREDIT

You’ve likely made resolutions for the New Year. Do they include your financial wellness?  We recommend taking time to review your credit report and using these tips to boost your borrowing power.

PAY YOUR BILLS ON TIME, EVERY TIME

“On time” means the company receives your payment by the day the bill is due.  Schedule recurring payments or create a calendar reminder to not miss a payment.  Late or missing payments can have a negative impact on your credit. Consistency is key.

WATCH YOUR CREDIT LIMIT

Credit scores consider how close you are to being “maxed out” on credit cards. Keep your balance significantly lower than your credit limit for a healthier score.

SPREAD OUT CREDIT APPLICATIONS

Don’t apply for too much credit in a short period of time. Your credit score may go down if you apply for or open new accounts too frequently.

PAY OFF YOUR MONTHLY BALANCE

Using your credit card regularly can help you build credit—just make sure you’re paying off the monthly balance in full.  Paying off the balance each month can build better credit than carrying a balance, and it helps you avoid finance charges.

KEEP IT UP

Credit scores are based on your overall history of making payments on loans and other bills.  The longer you work toward building credit, the more information there is to calculate your credit risk.

KEEP OLD ACCOUNTS OPEN

Got an old credit card?  Don’t close the account.  Doing so may impact your credit utilization ratio and mix of credit accounts.  It also could shorten the length of your credit history and negatively impact your credit score.

CHECK YOUR CREDIT REPORTS

You can request one free credit report from each of the three major credit bureaus each year.  It’s important to review your reports for inaccurate or fraudulent information, as that could bring your score down.  To report an error, file a dispute with both the credit reporting company and the company the information was sourced from.

As you look to borrow this year, remember to consider how your credit score will be impacted.  Credit doesn’t have to be scary.

Take advantage of our free financial coaching services to review your credit or have any questions when the time comes to borrow and how this effects your overall score.