3 easy ways to improve your credit score

When making a large purchase such as a car or a new home, your credit score can have a HUGE effect on getting approved for a loan and the kind of interest rate you be able to qualify for. If your credit score isn’t the best, it’s time to change that now. Here are 3 super simple ways you can raise your credit score in no time.

Don’t miss a payment: This is the number one thing that credit bureaus look at when determining your credit score. Your payment history makes up 35% of your FICO score. If you have trouble remembering to pay your credit card on time, set a reminder on your phone or auto schedule your payment.

Reduce your debt: Even if you’re making regular payments on your credit card, the goal is to get it paid off. If you’re keeping a balance from month to month, you’re getting charged more interest than you should be. Try and pay off your balance each month, and if that’s not possible, make your balance as low as you can. You should aim to keep your credit utilization under 30%.

Raise your credit limit: This is more of a trick than a solution, but it can work for you. If you’ve used $950 on a $1,000 limit, try getting that limit raised to $2,000. Now you’ve got a card that’s only 50% utilized as opposed to one that’s nearly maxed out.

 

John Pettit

John Pettit

John Pettit is the Managing Editor for CUInsight.com. John manages the content on the site, including current news, editorial, press releases, jobs and events. He keeps the credit union ... Web: www.cuinsight.com Details

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