How do I improve my credit score?
We get asked this question a lot, and for good reason- it’s important! If you want to use credit to buy a car, rent an apartment, get a mortgage, or anything else, you’ll want to have a good credit score.
Unfortunately, many people have unknowingly damaged their credit profile with things they’ve never given a second thought to. Some people don’t know that credit card payments, cable and internet payments, house and apartment rent payments, car payments, student loan payments, and more can affect your credit rating.
Here are some quick ways to improve your credit score:
Pay all of your bills on time with at least the minimum payment. Paying more than the minimum payment is ideal, but not necessary.
Pay your credit cards only once per month. Multiple payments within the same month can be looked at negatively sometimes.
Lower the amount of balance you are carrying on your cards. You want a low ratio of what you are borrowing to the maximum you are allowed to borrow.
If a lack of credit history is keeping your credit score down, perhaps you should start financing some purchases. Even though you might be able to write a check to buy a new car, it might be wiser to finance the purchase at a low rate over a few years to prove that you can responsibly handle credit.
Review your credit report and look for errors. Sometimes there are errors that could be hurting your credit score that can be easily corrected.