Good Credit Is Essential
Four ways to boost your score… we are here to help!
While there is no magic solution to raising your credit score overnight, if you have a low score due to lack of credit, there are things you can do to make it jump more quickly.
Fix errors on your credit reports
According to the Federal Trade Commission, one in four credit reports contains small errors, which can affect your score. Errors might include false information attributed to you because of identity theft, just a simple mix up, accounts that don’t belong to you, and more. If the mistake negatively affected your score, you can expect it to improve approximately 60 days after the correction is reported.
Pay off credit cards every month
If you pay off your debts, you’ll see your score go up. Of course, that doesn’t mean you should run out and buy things you don’t need. Instead, charge regular monthly expenses like bills and gas on your credit cards and then pay them off every month.
Stay away from your credit limits
Paying down the debt will improve your creditworthiness and help your “credit utilization” – the amount of debt you have relative to your credit card limits. When you get closer to your limits, you reduce your available credit, which is bad for your score. So bringing down your debt to an acceptable amount as defined by the credit bureaus should improve your score.
Set up automatic payments
Your credit score takes a hit with every late payment because payment history comprises 35% of your score. If you struggle to remember when money is due, set up automatic payments with your credit cards. It’s an easy way to stay punctual and – barring other major marks against your credit – turn your score around in a relatively short amount of time.
We know not everyone has perfect credit. That’s why if you’re struggling to build or rebuild your credit, we want to help you on the journey. The first step is easy… just give us a call for a free credit review!