Tuesday, March 22, 2016

7 Tips For Improving Your Credit Score

This week we are going to wrap up our multi-week discussion on credit reports. Now that your are regularly checking your credit score, and have a better understanding of how your credit score is calculated, today it is only natural to discuss the ways in which you can improve your credit score.

This is not an exhaustive list, but a straightforward road to credit score improvements over time:
  1. Always make your payments on time. If you cannot pay the full amount, make at least the minimum payment. 
  2. If you think you will have trouble paying a bill, contact the lender right away. See if you can work out a special arrangement to repay your debt.
  3. Try to use less than 35 percent of your available credit. For example: if you have a credit card with a limit of $10,000, try to not have an outstanding balance of over $3,500 at any one time.
  4. Instead of closing an older account, consider leaving it open even if you no longer need to use it, especially if there is no annual fee. Use it from time to time to keep it active.
  5. Limit the number of times you apply for credit in a short period of time. It is a good idea to seek credit only when you really need it.
  6. Consider the use of a mortgage broker. As they run your credit report one time and use that to shop to different lenders. Shopping for a mortgage yourself to multiple lenders can result in multiple credit applications and a ding to your score.
  7. Having a mix of credit products could get you more points, but don’t go overboard. Make sure you can afford to pay back any money you borrow. Otherwise, you could end up hurting your score by taking on more debt than you can handle.
So there you have it. Follow this simple list and you’ll be on your way to a higher credit score in no time.

Have you used any of these strategies to improve your credit score?

Russel Lalovich
Office: (519) 966-0444
Cell: (519) 995-5620

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