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Ways to Improve Credit Score

January 14, 2022

Ways to Improve Your Credit Score

With a new start to the year means a fresh beginning and ways to improve all around. We wanted to help by sharing ways on how to improve your credit score. Raising your credit score might not be a quick fix but by following these tips can help improve it over time. Having a good credit score can help lower interest rates on credit cards, personal loans, and a mortgage. Higher credit scores will lead to lower monthly payments that can result in extra cash that can be used towards other goals like debt payments, college funding and your retirement fund.

Setting up an autopay on your credit cards and student loans can help pay less interest in the long run. Your payment history is a major factor in your FICO and Vantage Score due to having an established history of timely payments will show that you can handle future debts responsibly. Therefore, paying your bills on time is important and will boost your credit score.

Credit utilization is the amount of available credit you have that is relative to the money you owe which is 30% of your credit score. It is important to use less of your available credit. Paying off your entire balance before every month will help avoid interest payments.

Soft inquiries should be used when viewing your credit due to not affecting your credit like a hard inquiry would.

Monitoring Credit accounts via free services online can help see progress and protect yourself and your accounts against fraud.

The most important part is to be patient and monitoring your credit score. Your credit score will not drastically improve overnight but the best way to continue success is to develop good long-term credit habits. We hope these tips will help you increase your credit score throughout the year. Please schedule a time for more information that will benefit you.