A higher credit score saves you money!
Did you know that your low credit score is costing you money? Having a good credit score gets you the best rates for car loans, credit cards, mortgages and more. You can also get pretty good credit sign up bonuses. But you have to put in some work to get the credit score you want.
1.Get a copy of your credit report. You can get this from all 3 major credit bureaus. Look out for errors such as accounts you don’t recognize, late payments you made on time, closed accounts still listed as open, and any other discrepancies. Notify the credit bureau about these errors in writing.
Get a new credit card, but barely use it: A new credit card can slash your utilization rate, which is important in getting a high credit score. Your utilization rate can be figured out by dividing your total credit card balances by your total credit card limits. You should aim for a utilization rate of 25 percent or less. Adding a $5,000 limit credit card and barely using it can decrease your utilization rate. But don’t get too many cards at a time, and be careful about getting a new card if you’re planning on getting a mortgage or loan in the near future.
Make payments more than once a month: you don’t have to increase the amount you pay in a month but making multiple payments in a month can help your credit score. Making multiple payments can improve the chances of having a low balance when your credit is examined.
Make larger payments: always a good idea to pay more than the minimum. Lower balances bring utilization rates and increase your credit score.
Start paying off the maxed out card: pay off the card with the highest utilization rate. Individual cards have an impact on your credit score.
Sign up as an authorized user: an account holder can make another person an authorized user on their account. This person receives a card with their name on it can immediately establish a credit history. Some things to know is that authorized users are not legally responsible for paying off balances that are accumulated on the card, and late payments can bring down the account holder’s score.
Keep it simple: pay bills on time, keep your balances low, and don’t apply for new credit cards too often, and your score will be fine.