6 Ways To Raise Your Credit Score

Our financial lives depend on our creditworthiness. When we go for a loan, lenders review our credit report and our FICO credit scores to determine our annual percentage rate.

Generally, the higher our score on a 300-850 score, the lower the borrowing rate we will pay on our loans for our car, mortgage, or college tuition.

Can You Improve Your Credit Score?

The short answer is yes, you can!  We will go over tips to increase your scores.

Here are the Ways To Increase Your Credit Score.

1. Little To No Credit History

When you have a relatively “thin credit file,” it means you don’t have much in the way of showing that you are responsible with credit yet.

Minimal credit history accounts for about 15% of your credit score. There are a couple of things for you to do. You can become an authorized user on someone else’s account like a parent. Make sure that they use their credit responsibly, or it won’t be beneficial to you.

If you have credit cards, you no longer use or need it, it is better to cut them up and put those cards in a drawer and forget about them. The exceptions to de-classing them to your sock drawer are you will be too tempted to spend or pay annual fees.

2. Don’t Close Any Unused Credit Accounts

The credit bureaus require you to pay the minimum amount required on time. They are looking at your payment history, which counts a lot towards your overall credit score.

3. Pay Bills On Time

Credit mix is a factor in your score, though not as influential as credit utilization. Think carefully before applying for more credit than necessary.

4. Apply For New Credit Sparingly And Only If Needed

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