Wanna Improve Your Credit Score?

Is your credit score holding you back? You aren’t alone. The national average credit score is 704, which falls outside of the “ideal” score of 720. Take a look at these tips to help boost yours!

Prioritize Paying On Time

Payment history is the most significant factor in your credit score. If you know that you might be late on a payment, call ahead of time to ask for an arrangement. Many companies are willing to work with you, especially if you are usually on time. Communication is key.

Review Your Credit Report

Errors can happen. It’s important to routinely check your credit report to catch any mistakes. All of us have three reports from the major bureaus: Experian, Equifax and TransUnion. According to a study from the Federal Trade Commission, 1 in 5 consumers found an error on at least one of their credit reports. Don’t let yourself be a victim.

Don’t Overuse Your Credit

Never max out your credit cards. You should try to only make credit card purchases if you have enough cash to back it up. Those who have the best credit scores have become experts at credit utilization. Keep the percentage of your credit card purchases as low as possible.

If you are a new credit card owner, you should stick to small purchases that you can pay off by the due date with certainty to establish good credit.

Let Your Credit Age Grow

Some people may have a relative that would be willing to add them to their credit account as an authorized user. For those that don’t, it’s best to wait it out and avoid closing any accounts.

A good age of credit history is five years and up. The longer your positive credit history is, the better chance your scores have to build up.