Improving Your Credit Score

March 16, 2016

We all know that your credit score is important. But how exactly do you go about improving your credit score? We have found four ways that we have found to be simple tricks of increasing that number:

Reduce Credit Card Balances
Pay down your existing balances. You don’t need to have all the balances down to zero, but make sure you are making large payments each month. Ideally you want your balance to be under 20% of your total credit limit.

Utilize Credit
If you have a credit card or line of credit that is not getting used, you may want to think about using it. Aged lines with no usage can sometimes be canceled by banks or other banks may not be willing to lend to you if you have never used an existing line before or a dormant line of credit. Make small purchases with these every once and a while. It will show on your credit report that you had a balance and paid it off which will help.

Avoid Late Payments
You do not want to pay your credit cards late. This will stay on your report for years. Make sure you are paying things on time and consider setting up automatic payments to avoid late fees.

To get a copy of your credit score visit www.annualcreditreport.com. You can receive one free copy from each credit bureau each year to analyze and make sure all things reported are correct.

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