03 Apr How to Improve Your Credit Score Like a Pro
A credit score is a 3 digit number that is unique to your credit report. Your credit score allows potential lenders to quickly get an understanding of your credit and how likely you are to become delinquent on credit cards, loans, or mortgages.
There are several things that go into determining your credit score and they all have a different level of importance. From most important to least important, these all factor into your credit score: payment history, amount owed, length of credit history, types of credit under your name, and amount of credit inquiries you have.
If you’re not paying on time, that’s going to significantly harm your credit score. Set up reminders to pay either in your phone or on your computer. Set it up so you will get an alert a few days before the bill is due.
It’s also extremely important to monitor your credit to make sure nothing weird pops up. You can monitor it for free by using sites like CreditKarma.com. One little mistake could prevent you from receiving an important loan in the future. When you monitor your credit, it’s important to pay attention to your credit utilization ratio in check. This is a huge factor of your credit score. The lower the ratio is, the better your credit score will be.
You’ll also want to establish a credit history. The longer you keep a credit card active, the better your credit score will be. It also helps to diversify your credit history. A mix of loans and different credit cards shows borrowers that you are responsible and can keep up with multiple accounts.
Credit may seem complicated and stressful but it’s important to stay on top of it and always work on improving it! A good credit score could save you money in the future.