Use some of these strategies to help raise your credit score!

If only boosting your credit score was as easy as saying “Open Sesame” and watching it transform from low and sad to high and triumphant. But what if it is? Credit scores are confusing, but helping plump it up can be simple. Maybe not as simple as uttering a single phrase, but if you follow these tips, you’re bound to see your score slowly rise over time.  

Simple Ways to Boost Your Credit Score

July 18, 2017

Use some of these strategies to help boost your credit score over time!

If only boosting your credit score was as easy as saying “Open Sesame” and watching it transform from low and sad to high and triumphant. But what if it is? Credit scores are confusing, but helping plump it up can be simple. Maybe not as simple as uttering a single phrase, but if you follow these tips, you’re bound to see your score slowly rise over time.

 

Always Pay On Time

The number one rule to keeping your creditor happy and raising your score is to always pay on time. Even if you’re only making the minimum payment, paying it on time will reflect well on your account and boost your score. Even one late payment can hurt your score, so avoid late payments at all costs. An easy way to avoid late payments is to automate your payments. Lots of credit cards and financial institutions have an automatic bill pay feature available! An added bonus of paying on-time: many creditors will extend your credit limit if you make a certain amount of on-time payments in a row!

 

Vary Your Types of Credit

Having a variety of credit types and using each of them responsibly will help increase your score over time. Having a revolving line of credit, like a credit card, and an installment account, such as a car loan or mortgage, shows that you know how to utilize both types of credit. Having at least one open account of each type of credit shows that you can handle different kinds of payment plans and increases your credibility and score!

 

Avoid Opening Excess Cards

It’s important to have credit available, but having too much can be seen as a risk by lenders and credit bureaus. You may not be charging to all of your cards, but your credit line is still there and you could go into that much debt if you chose to. Avoid opening too many new cards at once; this can send up a red flag that you need lots of credit and lower your score. Don’t let an added bonus or introductory interest rate sway you into opening a card you really don’t need—it will probably hurt your score instead of help it.


Keep Track of Spending on Credit Cards

The amount you have on your credit card can affect your credit score. A good rule-of-thumb to keep your score high is to use 30% or less of your credit limit. If your credit card has a $1,000 limit, try to keep the balance under $300. Maxing out credit cards can limit your access to new lines of credit or better rates and brings your score down. If you have a hard time keeping track of the numbers, an app like DebtTracker Pro can help ease the pain of tracking your credit utilization and other credit factors.

 

Increasing your credit score takes time, but if you’re diligent you will definitely see a difference! Using your credit responsibly is the key to increasing—and maintaining—a high credit score.

Have other credit score questions? Let us know below!

This article was adapted from our Understanding Your Credit Score seminar. See all seminars here.

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