A higher credit score will typically allow you to qualify for a loan or credit card, as well as get you a better interest rate. Better credit can save you money. A lot of money. So how can you increase your credit score? Here are three ways:
- Pay your bills on time. Paying on time is the single-biggest credit scoring factor. It’s 35% of your score! Set up automatic payments or reminders if you need to.
- Focus on knocking down your debt. How much you owe is the second-biggest credit scoring factor. It’s 30% of your score. As your debt goes down, your score will go up.
- Rarely open new accounts. Every time you apply for a new credit card, for example, it takes approximately five points off your score. Not a lot, but if you apply for several cards in six month’s time, it adds up. Plus, new credit will lower the average age of your accounts, which is another score factor.
Follow those tips and watch your score soar! For an individual consultation with one of our certified credit professionals, just call 479-521-8877 and ask for a credit report review, which will include your credit report and credit score.
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