Are you in the process of making improvements to your credit score or just beginning the journey to good credit? We’ve got some helpful tips to improve your credit score that are simple to implement:
Pay Off Your Card Balance
The number one, and most obvious, thing to do always do is pay your balance off every single month. While it’s sometimes okay to carry come of it over from month to month, you don’t want to make this a habit. At the very least, keep your revolving balance to less than 30% of your total available limit.
Do Not Make Large Purchases
If you cannot afford to pay cash for a purchase, do not charge it to your credit card. The ease of credit card makes them a tempting option for large – and often unaffordable – purchases. The impact to your credit score can be dramatic and the interest accrual over time is staggering. So, save up for those large purchases. Open a savings account and put away a small amount of money each month, as much as you can afford, and use those funds for a large purchase.
Having credit history will improve your credit score. This includes credit cards, mortgage loans, and auto loans. The longer a bank reports a history of on-time payments, the more your score will improve. So, do not jump around between credit cards and avoid opening new accounts frequently, both of which will lower your score.
Check Your Credit Score Frequently
Watching your score increase over time is one of the rewards for being financially responsible. There are several apps you can use to check your score. Our favorite is Credit Karma (iOS & Android) which will update your scores monthly and alert you to any changes on your credit reports.
Improve Your Credit Score
Improving your credit score not only helps with loans and interest rates, it also helps you find the lowest car insurance rates! Contact us today for more information about how credit and auto insurance rates are tied together.