It’s true! Your credit score dictates everything from whether you’re approved for a credit card to what rate you’re offered for your mortgage. Consumers are becoming more aware of how much their score affects their financial outlook. It pays to treat your credit score with care!
Improve your credit with these top 6 steps:
- Always pay your bills on time. This item results in a more negative scoring impact than any other type of credit mistake! All accounts need to be paid every month on time. Use your phone calendar as reminder if needed!
- Watch those credit card balances. Keep your individual credit balances low on each credit card you use. Aim for using no more than 30% of the available credit balance on each credit card. This is more critical than putting all your funds into paying off one other card. Keep track of those balances!
- Continually review your Credit Report. You’re entitled to one free credit report each year from each of the three reporting agencies (Equifax, Experian and TransUnion). Order these free reports from annualcreditreport.com Review these reports closely and dispute any errors. Hint: Spread out your requests about every 4 months and you can track all year long for free!
- Apply for new debt sparingly. If you apply for credit several times in short period of time, it hurts your credit. And please realize a new telephone equals new credit! There are folks whose new cell phone cost them a new home when they were in the loan mortgage application process!
- Don’t close unused credit accounts. Your history with credit is important. The older your credit history is, the better it is for your score. Leave old debt accounts on as long as possible.
- Pay more than once per month in a billing cycle. With the goal of reducing debt, it helps to pay down your credit cards every two week rather than once per month. This lowers your credit utilization and improves your score. And working harder towards getting rid of your debt should be your #1 goal!
It typically takes at least 3-6 months of good credit behavior to see noticeable differences in your credit score. Taking the 6 steps listed above will start you down the pathway to better credit. Start right now so you can make those life changing plans happen in the near future…like a new home!
Want to know more about Credit Score Myths? Get this FREE information: Credit Score Myths