Your credit score is a moving number. Your actions can increase or decrease your score at any time. There are many reasons to improve your credit score. A good score means lower interest rates on credit cards and loans,…and ultimately, more financial opportunities. Here are 4 key things you can do to improve your credit score.
- Fix Credit Report Errors
Errors can dramatically reduce your score. By fixing credit report errors, you may see an immediate increase in your score!
- Pay Bills On Time
Payment history accounts for 35% of your score. Paying bills on time is therefore extremely important.
- Reduce Balances Owed
The amount of money you owe on credit cards, loans, and other debts accounts for approximately 30% of your credit score. Pay down your balances, if possible, and keep them low.
- Keep Old Accounts Active
Older accounts provide years of credit history, which accounts for about 15% of your score. Do not close out old accounts simply because you don’t intend to use them. It is better for your score if you keep those accounts open and active.
Above are just 4 basic ways to improve your credit score. There are many other methods and techniques that may work for you in addition to the ones above. Follow our blog for additional ideas. If you have unique circumstances or unusual items on your credit report, you may need some special help. Give us a call for a free consultation!