We’ve all seen the numerous commercials on television for companies that can help you find out what your credit score is. Some use bands and catchy songs while others dress characters as superheroes. Either way, for as much as we hear about credit scores, they seem to be important.
Making payments on time and blending your credit are just two ways to boost your poor credit score.
Well, Northeast Security Bank is here to tell you that having a great credit score opens many doors, while a subpar score does the opposite. So, how do you go about improving your credit score? Here are four tips for bumping up your score to help you get the mortgage, loan, car or other big-ticket items you want and need.
Pay down your highest balance- this is key for those with multiple credit card balances. For instance, let’s say you have two credit cards. The first has a $1,600 limit and $400 balance (25% used) while the second has a $1,000 limit with an $800 balance (80% used). Pay down the second card’s balance first; the higher utilization percentage is damaging your credit score more than the other card.
Blend your credit- lenders want to see that you can handle different types and amounts of credit. Having a mix of revolving credit (credit cards) and installment credit (fixed payments and established due date) can boost your credit score.
Be timely with payments- this is an easy way to make sure your score doesn’t do a swan dive. You never know which monthly payments will end up on your credit report, so don’t take any chances.
Protect what you have- once you have a good credit score, make sure it stays that way. Go easy on the credit cards, make payments on time and don’t ever co-sign for someone else’s debt. If they default, your credit score will end up worse than ever.
Your credit score may seem like a mystery at times, where you don’t know if it’s good or bad, or if the steps you’re taking are helping. Keep at it, and eventually you’ll reach the level you want.
We hope these tips help, and we look forward to seeing you soon! Tags: credit, credit rating, credit score, debt