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How To Improve Your Credit Score

In the wonderful world of collections, there are actually many tips and tricks that can help relieve you of these financial burdens. So many in fact, that we can’t possibly cover all of them in just one article. Most people shy away from checking their credit score or don’t have a clue where to get started. It’s important to make checking and increasing your credit score a top priority because to lenders it is a reflection of how fiscally responsible you are. This score dictates whether you’re approved for a mortgage, credit card, and so much more.

So before we get started on how to improve your credit score, let start by checking what your credit score is if you don’t already know it.

Most commonly used websites are AnnualCreditReport.com or CreditKarma.com or you can consult with a Credit Counselor. 

How To Improve Your Credit Score

Adjusting Credit Card Balances

If you are looking to improve your credit score, it’s best to start by asking for a higher credit limit on your credit cards. This tactic is most commonly recommended by Credit Counselors. Although calling up your credit card company can feel a little bit daunting, it’s worth the trouble if its going to jump your credit score. First step, is to locate your creditors phone number online or on the back of your card. Thoroughly explain to the representative your reason for requesting an increase. Be prepared to provide additional information such as income, employment status, and personal information. This can also be done in person or depending on your account requested online.

The reason you want to start here is because the balance due on your credit card should always be less than 30% of your limit. This simple adjustment improves your credit score drastically. So start working on those cards that are reporting more than the 30 percent first and increase those monthly payments as best as you can. Decreasing that utilization rate makes a huge difference!

Fix Report Errors

Read through and make sure everything looks accurate on your credit report. Look carefully through several different credit reports for items that may not be yours, paid balances, or items that are repeated too  many times. There are some important steps to consider when filing a dispute, click here to learn more.

Although this isn’t the most exciting way to spend your day, this is a major step towards cleaning up your credit score and will benefit you in the long run.

Plan Your Monthly Payments

Are you often a little late on your monthly car payment or phone bill? Those can actually stay on your report for years and can really plummet your score.

A smart strategy is to put all your bills on automatic payments to avoid overdraft fees or plan your bills better around your paydays. How on time you are to pay a bill really speaks to your borrowing power and strength.

Some other tips to help improve your credit score are:

  • Opening a new Credit Card account
  • Become an authorized user on someone else’s credit card
  • Reduce your credit utilization & budget spending
  • Don’t reduce your credit limit or close any cards

These tips are worth doing more research on to clean up your credit report!

Naturally, we all want an instant and amazing credit score. Unfortunately, this is a process. But knocking down debts chunks at a time, you’ll see your score drastically improve right before your eyes.

Just months of following steps like these, can increase your credit score significantly! Be patient and diligent. Watch your spending and make checking your credit score a top priority. The benefits of improving your credit score pours into every part of your financial life and gives an incredible sense of accomplishment.

Contact one of our Loan Officers here at Sun American Mortgage to help you start this process today!

For more information on how to improve your credit score, click below:



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