Boost Your Credit Score: Tips and Tricks
Having a good credit score is essential in today’s world to get you the best rates and overall save you money! Here are some tips that have helped many of our clients in the past:
Make sure you are paying your bills on time
Late payments can have a significant negative impact on your credit score. Set all your loan payments, including and especially credit card minimum payments, on auto pay, just in case you forget.
Keep your credit card balances low
High balances can also negatively impact your score. If you can, we recommend paying down or paying off your credit cards weekly. We have recommended this to many clients and seen significant improvement in scores within 30 days, especially if they're paying off their credit cards monthly anyway.
Dispute any errors you find on your credit report
Mistakes can happen, and it is important to correct them to ensure your score is as accurate as possible. I recommend getting a copy of your free credit report from each of the major credit reporting agencies - Equifax, Experian, and TransUnion - at least once a year. (See the back for more information).
Try to negotiate with collections to have them deleted from your credit completely
This can be done by calling the collection agency. Getting them deleted instead of just paid in full makes it so it never happened on credit! Whatever you do, don’t ignore them. Get them paid off or deleted as soon as possible. Time is everything in credit.
Limit new credit applications
Try to limit the number of new applications for credit per year. Each time you apply for credit, it can have a negative impact on your score. Try to say no when each store offers you savings to sign up for their credit card.
Don’t close old credit accounts
Closing your credit accounts can hurt your credit score because it will decrease your available credit. I recommend keeping your oldest credit account(s) open and active- meaning use them at least once a month
Consider a secured credit card if you have a limited credit history
These types of cards require a security deposit, but they are a great way to help you establish credit. With these, make sure you keep the balances very low, at approximately $25 per month or less and pay off monthly, or weekly, if you can.
Remember, improving your credit score takes time and effort. But with a little patience and discipline, you can boost your score and achieve your financial goals!
