How to improve your credit score
You can get a free copy of your credit report from each of the three major credit bureaus once per year, if you want to get them you should go to AnnualCreditReport.com which is the best and easiest way to obtain your credit reports. You should then review your reports carefully to look for any inaccuracies that could be dragging down your score. There are many things you can do to improve your credit score. Some are more difficult than others, but all are worth considering.
1. Check your credit report for innacuracies and errors. This is one of the easiest things you can do to improve your credit score.
2. Pay your bills on time. This is one of the most important things you can do to improve your credit score. Payment history makes up 35% of your FICO® Score, so it’s important to keep up with your payments and pay them by the statement date.
3. Keep your credit balances low. This is also important for keeping your credit score high. Balance, also known as credit utilization, accounts for 30% of your credit score. We recommend paying down balances to 30% of your allowed limit, and optimally less than 10% as you pay down your balances over time.
4. Only apply for new credit when you need it. Each time you apply for new credit, your credit score takes a small hit. So try to limit the number of new credit applications you submit.
5. Try to diversify your credit sources. This means having a mix of both revolving credit (credit cards) and installment loans (auto loans, student loans) on your credit history.
If all this is overwhelming, we are more than happy to take care of the hard parts for you. Our education program will help walk you through the process in building back your credit so that you can start to reflect the credit you deserve! To have a customer care representative get in touch with you for a FREE consultation, please click here.