Credit
What are the top two ways you can improve your credit score?
What are the top two ways you can improve your credit score?
(1) Pay your bills on time. This means getting organized with your finances so you have a clear understanding on when bills come in and when they must be paid. This makes up 35% of your credit score. It is a BIG deal.
(2) Use a small amount of credit in relation to what is offered to you. Use less than 10% of your available credit and your credit score will go up, up and away. First, identify the credit limits on all credit cards. Let’s say that number is $1,000. If your monthly balance averages $400, you are using 40% of your available credit. That is not good.
THE FIX: You want to use $100 or less. You can contact your credit card company and request an increase in your limits to change this %. Request a big number like $10,000. Maybe they give you $5,000. With $5,000, a $400 credit card balance is well under 10%. This makes up 30% of your credit score. Winner, winner, chicken dinner!