Boost Your Credit Score!
Boosting your score may take diligence and time but it's worth it in the end!
1. Pay Bills on Time
This seems obvious but even taking advantage of your grace periods can have adverse effects like added interest/fees. If you're having trouble keeping up, contact your creditor directly to try to work out a plan. Involving a third party for assistance is not recommended. They will charge you additional fees and may further negatively impact your credit further down the line.
2. Pay Off Debt
Your debt to income ratio is used in the mortgage world to establish how much more debt you're able to incur assuming the least risk possible. Although it's important to have revolving debt that you make payments on to keep your credit score high, you want to keep your debt to income ratio healthy.
3. Don't Close Unused Credit Cards
Sometimes closing out a credit card can have adverse effects on your credit. If you have it paid off, you may want to keep it open without a balance.
4. Don't Apply for Too Much New Credit
This refers to number 2 - keep your debt to income ratio healthy. Just because you CAN get approved for a high balance credit card doesn't mean you SHOULD. Take only what you need and don't allow yourself to get over-extended.
5. Dispute Credit Report Inaccuracies
Keep an eye on your credit report using free online resources. These may not accurately reflect your score but they should be able to alert you when your credit report receives a hard pull or inquiry. Make sure your report is accurate. If you see a discrepancy call the creditor directly. It may be possible the balance was sold or transferred or it could be signs of identity theft.
Keep your credit healthy by exercising frugal spending habits while still keeping revolving credit that you can make payments on every month.
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