More than ever a great credit score is essentially currency in this economy. People are becoming more and more aware of their scores and realizing the need for improving and maintaining a healthy score. Here a few quick things you can do that will raise your score.
1. Get a Secured Credit Card
These cards will require a few hundred dollars as a security deposit which is used as collateral. However they report to all three credit bureaus and as your score improves your will qualify for higher credit limits and lower rates. Check out your banking institution and credit unions. They can offer cards at lower fees and raes.
2. ALWAYS Pay Your Bills On Time
This sounds simple and yet people forget, or don’t do it. It is essential to have all your bills paid on time and current in order to maintain credit. If you have any bills that are 30 days past due it can cause major damage to your score. Budget carefully and make sure that your have the ability to pay each bill on time. A long history of on time payments shows responsibility and lenders look for that.
3. Keep Credit Card Balances under 35% of Your Limit
Just because you have a $10,000 limit does NOT mean you should max it out. Keep your balances low. Do your best to never go over 35% of your max credit limit. Even if you are paying off the card each month still don’t max it out. It’s better to have it spread out over a couple of cards and the balances low. Your debt to income ratio is important and needs to be kept as low as possible. Keep the balances low and you will have a great ratio. Simply paying down a maxed out card can raise your score dramatically.
There is no “secret” to winning at the credit game. Just be responsible, pay your bills on time, live within your means, and check your reports regularly to make sure nothing is being reported inaccurately. While we can’t control our scores perfectly we do have more control than most of us realize. Take some time to look at your reports and your budget and figure out where there is room for improvement. If you have questions ask the team. That’s why we are here.
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