Many financial decisions and opportunities rely on a good credit score. Your credit score is a shorthand way for banks, lenders, and credit card companies to get a glimpse of your financial history and responsibility. Unfortunately, credit reports don’t always reflect our finances positively. Building good credit takes time, but it’s essential for achieving financial success. To help you build better habits and more positive credit, here’s our guide on how to improve your credit score.
Learn More About Your Credit
To build good credit, you need to learn more about your credit report. Find out what determines your credit score, so you have a better idea of what to keep your eye on. Everyone knows that credit cards and loans play a major role in your credit report, but what other factors exist? For example, did you know that a
DUI conviction can affect your credit? An increase in your spending limit with a credit card company might also change your score. Building a good credit score is a full-time job, so it’s important to always be aware of all the different elements that influence your credit.
Pay Bills on Time
In the eyes of lenders and credit companies, late payments indicate a careless financial attitude. One of the most important parts of how to improve your credit score is paying all of your bills and loans on time. Fortunately, there are a lot of different tools you can use to help you stay on top of payment due dates. Sign up for automatic payments or reminders through your bank and credit company so you never miss a bill.
Stay on Top of Credit Cards
On top of all your other bills, credit cards also have a big influence over your credit report. A well-maintained and regularly paid credit card reflects positively on your credit score. On the other hand, credit card debt brings your score down. Do your best to pay off any credit card debt and keep your balances low and easily manageable.
