Ten Tips to Improve Your Credit Score and Maintain a Good Credit Score

A good credit score gives you more financial options. Here are ten tips to improve your credit score and maintain a good credit score.

 

A good credit score lets you have more and better financial options, from more and better deals on mortgages, loans, and credit cards, to more and better deals on insurance, housing, and even jobs.

If you want to improve your credit score, or if you have a good credit score and want to keep it that way, here are ten tips that may help you get and keep a better credit score.

1. Pay your bills on time, every time.

Just one missed or late payment may hurt your credit score.

2. Make a plan for spending and reducing your debt, and follow it.

Food, clothing, shelter, and medical care are your most important necessities. Look at unimportant expenses that you can get rid of, things that you can sell for extra money, and other ways to cut costs and bring in more money. Also, make a plan for paying off your debts.

3. Check your credit report and fix any errors.

At least once a year, get a copy of your credit report and credit score. Check your credit report for any errors and fix them. Also, check your credit report to see if anyone has tried to access your credit without your permission.

4. Use credit responsibly.

To use credit responsibly:
· Avoid taking on more credit than you can comfortably handle and "maxing out" your credit cards.
· Make an effort to pay down your current debt.
· Avoid applying for a lot of credit all at once.
vIf you've bitten off more than you can chew when it comes to credit, stop using credit.

5. Keep a long history.

You may have had a credit card for a long time that you just paid off, or you may have paid off all of your credit cards. You may want to close them, but closing all of your credit card or other credit accounts may lower your credit score. If you plan to close credit card accounts, close your newest accounts. Keep your oldest credit card account open to help you maintain a long credit history, which may improve your credit score.

6. Get help.

If you are facing a setback, like a job loss, divorce, illness, or injury, or talk to your creditors right away. Your creditors want to help you protect your credit. Your creditors may lower your interest rates, monthly payments, let you stop making payments until your situation improves, or recommend financial counseling.

It's important to take action right away, because the sooner you talk to your creditors, the sooner you can get help. The longer you wait, the fewer options you have to protect your credit score.

Consider financial counseling, too. Financial counseling can help you make a plan for spending and paying off your debt, work with your creditors, and understand your financial options.

7. Get into a mix.

If you have a limited credit history, a diverse mix of credit accounts, including installment loans, like car loans and mortgages, or revolving credit, like credit cards and lines of credit, may help you build a stronger credit history.

8. Look into debt consolidation.

Debt consolidation may help you improve your credit and save money by lowering your interest rates and the amount you owe every month. Debt consolidation may also help you organize and streamline your finances with just one payment.

For more information about debt consolidation, visit our Debt Consolidation  page.

9. Look into refinancing your mortgage.

Now may be the time to refinance your mortgage for a lower monthly payment, lower interest rate, or to change your adjustable rate mortgage to a fixed rate mortgage. Refinancing your mortgage may help you get extra money to pay off credit cards or other debts.

For more information about refinancing, visit our Mortgage Refinance  page.

10. Protect yourself.

Make sure that you get any promises or details about any financial transaction in writing, read everything carefully before you sign it, and ask a legal or financial expert to help you understand anything that isn't clear. Avoid signing anything that you don't understand or that seems too good to be true or too easy to do.

Don't give your personal information, like your social security number, credit card numbers, or bank account numbers, to anyone you don't trust and report any unauthorized access to your credit to your creditors, credit agencies, and law enforcement.

 

Related Articles:

Seven Tips to Protect Your Credit When Life Happens

 

 

These are general recommendations not applicable to all financial situations. Every financial situation is unique. Further, the suggestions and recommendations contained within the content provided are not an assurance of any future result. Be sure to discuss your specific financial circumstances with a legal or financial expert before you take action. Contact us  for more information.