Better Money Habits to Boost your Credit
Watch to see how tweaking everyday behavior can have a big impact on your score over time.
For more everyday ways to boost your credit score, check out this article on 12 better money habits.
Video Transcript
When it comes to improving your credit score, building better money habits may be your key to success. Building a strong credit score isn't attributed to just one thing. There are many factors that impact your score. But achieving a strong score doesn't always have to be a huge undertaking. Tweaking simple things can have a big impact on your score and overall credit health over time.
Here are five tips: Review Budget; Alerts and Autopay; Pay down Credit Cards; Use Credit Cards Less;Monitor Credit Score.
First, review your budget regularly. If you've created a budget, that's a great first step, but what's the point of creating a budget if you're not sticking to it? Know how much you're allowed to spend each day, and keep track of your monthly bills to help you avoid overspending and taking on more debt.
Next, sign up for payment due date alerts or enroll in Autopay. Doing these two things can help you keep tabs on your account and help you avoid having any late payments. Your payment history is the most important factor in determining your credit score. So paying on time, every time, will not only help you avoid late fees, but it can help your score climb.
Third, try making multiple payments or more than the minimum payment for your credit cards each month. This can help you reduce your balances, make your payments on time, and keep your credit utilization ratio lower throughout the billing cycle.
Next, try to stop using your credit cards. Leave your credit cards at home and only bring the cash you need. Cutting down the amount of credit you use relative to your credit card limits, also known as lowering your credit utilization ratio, is a great way to improve your credit score and to save money.
Lastly, monitor your credit score regularly and review your credit report annually. Checking your credit score will help you know right away if you're making progress or if there's something dragging your score down.
Sign up for Upgrades Credit Health to get your free credit score and access to other credit tools. And don't forget, you can check your credit report from each major agency once a year for free. Look for what is impacting your score and ways you can improve it, and if you catch any errors, make sure you get them corrected.
Establishing better money habits can help you reduce your spending, avoid taking on more debt, make your monthly payments, and lower your credit utilization—All things that boost your credit score and build stronger credit health. What are you waiting for?
Get started on building better money habits today.
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