February 5th, 2018 9:44 AM by Mike Herborn
Raising your credit score won’t happen overnight. But there are things you can do to help it over time. Here is a list of the best ways to get that credit score up:
A good way to get your credit score up is to pay down the credit card balances you have and try to keep them low. An important aspect of your credit score is the amount of all of the credit you have compared to how much you use. It is best to use no more than 30 percent of all of your credit.
This may seem to go along with our last point, but it is important to know. Every time you have your credit pulled by a potential creditor or lender, you can lose points from your credit score. This includes co-signing for a loan.
Depending on your total available credit, closing a credit card account with a high credit limit could potentially hurt your credit score. The same could be said about removing old debt. This may actually hurt your score because having a history of good debt is actually better for your credit score. It helps potential creditors see how you have managed your financial responsibilities.
When you consolidate all of your debt onto one or two credit cards, it will appear that you are “maxed out” on that card and you will be penalized.
Keep paying your bills on time. Pay your bills on or before your due date and put them before buying anything that is not a necessity. Paying bills late can drop your credit score and the higher score you have, the worse the drop. If you need money for something, start a savings account and build it up while still staying current on your bills.
Just remember, building your credit takes time. Remain patient and keep persistent in your efforts to raise your score. If you ever have any questions feel free to give us a call at 541-683-3300!