How to increase credit score.
Having a good credit score can not only help you with buying a home but also major purchases like a car loan/lease, a business loan, lower interest rates with existing loans, and more. Here are four tips on how to build your credit and keep it in great standing:
- Watch and eliminate any credit card balances. Keeping your credit balances less than 30%, according to My Fico, is essential to good credit health. If credit balances are above 30%, this can impact your credit immensely. A great way to monitor your credit use is by downloading a free credit app for your smartphone that allows you to see a snapshot of your credit report without any penalties.
- Pay all of your bills on time. Whether you set up automatic payments, reminders through your smartphone, or keep a written calendar of your bills, paying each bill is crucial for a good credit score. Another useful process of making on-time payments is by keeping a document that states all of your bills and setting up automatic payments for that month. When it comes to credit card companies, some may allow you to change the payment date.
- Update all of your personal information with creditors. A very easy, yet very preventable, way to hurt your credit is by not changing your address when you move. Failing to change your new address with creditors and the card you are using to pay that bill can impact your credit if a payment is missed. Contact your creditor and/or bank to change your address as soon as it takes effect to prevent a negative mark.
- Set a monthly budget. With money constantly moving in and out of your bank account, it’s good practice to set a daily, weekly, and/or monthly budget. Setting a budget that includes your fixed costs, paying off debts, savings, and “play money” will put you in success with great financial health. Using plastic to make all of your purchases without any knowledge of where your next dollar should go or how much you truly have available for that coffee can rack up credit card debt and negatively impact your credit. Be mindful of your money and create a budget that works for you and your financial future, as well as your lifestyle.
Getting a good credit score happens over time with small, daily efforts. By setting personal goals and reaching new milestones along your credit journey, strive for the credit you want with the help of the above steps. If you already qualify for good credit and in search of a new or pre-owned vehicle, visit our inventory here to see how we can better serve your driving needs!