Having a good credit score can help you borrow money for essential goods and services, but it can also affect your chances of getting a job, insurance, or even finding a place to live. That’s why it is important to know your credit score and how your actions impact it.

Your credit report is divided into payment history (35%), the amount owed (30%), length of credit history (15%), credit mix (10%), and new credit (10%). Read how to boost your score in each area with these four, easy steps:

Fix Errors On Your Credit Report

According to the Federal Trade Commission, one in five 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.

At AnnualCreditReport.com, you can get free credit report copies from each of the three major credit bureaus (Experian, Equifax, TransUnion) once every 12 months.

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 owe relative to your credit card limits. When you get closer to your limits, you reduce your available credit, which can bring your score down.

Set Up Automatic Payments

Your credit score takes a hit with every late payment because payment history comprises the majority of your score. 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 relatively quickly.

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. Give us a call at 1-877-769-4766 for a free credit review.


Close Options