Credit scores are a vital part of financial wellness, but getting and keeping a high score can be tough. Here are six ways you can start boosting your credit score today.
Pay your bills on time
Your payment history is the most important factor in determining your score. A missed credit card payment can have a huge impact on your score, and it can take months to recover the loss. Set a regular reminder for a few days before your bill is due to ensure you never miss a payment.
Reduce your credit utilization ratio
Your credit utilization ratio refers to the amount of available credit you use. It’s best to keep your utilization under 30%, or even 10% if you can. It also can be a good idea to accept offers of increased credit or to request an increase on your own, which can instantly bring down your credit utilization ratio.
Use your cards
You need to use your credit cards to keep your score high. A great way to make sure you use your cards on occasion, but don’t overspend is to charge fixed expenses, like monthly subscriptions, to your card. Just be sure to pay the balance in full before the credit card bill is due.
Work to pay down outstanding debt
Pay down your bill by trimming an expense category in your budget and channeling that extra money toward your credit card bill. You also can reach out to your credit card company to ask for a lower interest rate. Finally, consider consolidating credit card debt with a personal loan from TruMark Financial.
Look for errors on your bill and credit history
A fraudulent charge on your credit card can bring down your score without your knowledge. Check your statements each month for possible signs of fraud. If you see anything suspicious, contact the credit card issuer immediately and dispute it.
Use the tips outlined above to start boosting your credit score today! Should you have any questions TruMark Financial is here to help, simply call 1-877-TRUMARK or visit your local branch.