5 Things That Could Help Your Credit Score

It is a common sense that acting in a financially responsible way, you will be able to steadily build your credit score and eventually benefit from low-interest rates and the ability to apply for better credit cards. As you walk that road, you should also know about the things that could help your credit score. And that’s what we are talking about today…

1. Paying Debt

Obviously, you should try your best to pay all of your debt on time. Doing so will not only improve your credit rating — it will ensure that it doesn’t decline. Paying your debts on time will eventually open up more doors to better interest rate credit cards and other more attractive credit offers. You can set up alerts as reminders to pay your bills so it won’t slip your mind.

2. Rent

In some cases, rent can play a role in improving your credit score — paying your rent on time every month is just as important as paying any other bill or debt. Not doing so can make it end up as a late payment and impact your credit score negatively. Ask your landlord if they submit to any of the three major bureaus, and if they don’t — see if they could do it (presuming you pay the rent on time).

3. Good Debt

Do not remove debt that has been on your credit report for a while, and has been paid on time and in full. Leaving the so called “good debt” and closed accounts is actually good for your credit report, and can help improve your credit score by showing your commitment to paying your creditors.

4. Increasing Credit Limit

Trying to increase your credit line will improve your credit utilization ratio — percentage of your credit limit that you have used — which will in turn help improve your score. You typically get the option to do this with your credit card issuers, and if it is offered – we recommend you take it.

5. Disputing Errors

It is estimated that approximately 1 in 4 Americans found at least one significant error on their credit report. What most aren’t aware of, or take action on, is the option to dispute credit report errors with the bureaus. First, spot the error on your credit report. Review all of your reports with the bureaus to make sure you have all the information. Next file the dispute with the right bureaus online, and finally – follow up.

Also read: How to Dispute a Mistake on Your Credit Report

Keep your eye on the score…

There are a few services that allow you to keep an eye on your credit score, such as myFICO and TransUnion. Both services will “deliver the goods” and provide you with the ability to know where you stand in the eyes of credit bureaus… and act accordingly. Good luck! 😉

Click here to read about the things that could HURT your credit score.