How To Improve Your Credit Score
The better your credit score is, the more you can do in life. Learn the key factors that can impact your score and get tips on how to improve it:
To learn more about how to improve your credit score, check out our 5 Tips On How to Get an Excellent Score.
Video Transcript
The better your credit score, the more you can do in your life. It can unlock more opportunities, and help you accomplish the things you really want. And no matter your score, you can always make it better. Here's how. First, pay your bills on time, every time. It's a really big deal when it comes to your credit score.
Why? Lenders want to know that you're responsible, reliable, and really, that you'll pay back your debt. Set up auto payments, calendar reminders, and notification alerts to help you get it done. They work, so let them work for you.
Second, try not to use more than 30% of your credit card limit. For example, if your limit is $5,000, try not to use more than $ 1,500 of that amount.
Credit card utilization measures the balances you owe on your credit cards relative to the card's credit limits. Maintaining healthy balance levels is key to showing you use credit effectively.
Third, pay attention to your credit score. Reporting errors and fraud? They happen. So keeping an eye on your credit score by regularly checking your credit report will help you catch errors or other things that could be dragging down your score. Plus, enjoy watching your score rise.
Next, be smart about opening and closing accounts. Less debt is good, but showing you repay debt is better. Leaving old accounts open can help your score because you're showing a long credit history. That's good news for you. Don't be closed to the idea of keeping those old accounts open.
Consider and balance out all of the factors that impact your credit health. No one but you can get the credit you want. So, get busy getting after that credit score and improving your credit health. The better the score, the more opportunities you'll have to do the things you want to do.
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