Do you want to build your credit score?
Your credit score affects interest rates that you get on loans, premiums for auto and homeowners insurance coverage, the ability to qualify to rent an apartment, the size of your deposit on utilities and many more.
Here are five steps to help build your credit score:
Tip #1: Setting Up Payments
Make all of your loan or credit card payments on time every month. Setting up automatic payments is a great way to make sure this happens!
Tip #2: Watching Your Credit Limit
Try to use 30% or less of your total credit limit. If your total credit limit of all of your accounts is $10,000, try to keep your balance below $3,000.
Tip #3: Checking Your Credit Reports
Check for errors and identity theft on cards that you don’t use regularly.
Tip #4: Knowing That History Matters
The length of time that you have had good credit accounts impacts your score! The longer you have been paying your loans on time, the more information there is for the credit formulas to determine whether you are a suitable credit recipient.
Tip #5: Strategizing Your Activity
Credit scoring formulas consider your recent activity, so don’t apply for a lot of credit in a short time period.
Which one of these tips are you going to try out this week?