7 Things You Can Do to Improve Your Credit Score
Everybody wants to improve their credit score, right? Well, if you’d like to improve your credit score, you’ve come to the right place. Read on for seven things you can do to improve your credit score, courtesy of Fidelity Bank of Florida.
- Pay off debt! This may seem obvious, but too often people try to simply move around their debt from credit card to credit card rather than pay it off. If you’re carrying a lot of debt, and the average American carries thousands of dollars of credit card debt, your first course of action should be to pay it down.
- Pay bills on time. Missed payments typically result in late fees, which add to the total loan balance. Not only that, but delinquent payments (or worse, debt turned over to collection agencies) can seriously harm your credit rating.
- Pay bills twice monthly. Paying bills twice each month can be a good way to manage accounts that are close to being maxed out. Make one payment right before the statement closing date, and then just before the due date. According to the financial experts at Forbes, the first payment lowers the balance credit bureaus look at, while the other payment keeps you current.
- Keep credit card and revolving credit balances low. A simple way to accomplish that other than paying down your debt is to contact the lender and ask them to raise your credit limit. $2,700 in debt looks much better on a credit card with a limit of $4,000 than on one with a limit of $3,000.
- Don’t overuse your credit. Your credit-utilization ratio should be under 30%. If you are using your credit cards everywhere, it might be better to see where you can you cash or write checks.
- Don’t get too many credit cards. Yes, some cards have great perks, but you should have only so many credit cards, gas cards, and department stores cards. Decide which ones you really need and which you don’t.
- But remember, don’t merely cancel those extra cards. Closing credit accounts means your total available credit goes down. Your goal should be to reduce your total debt load while maintaining your total available credit.
Following these steps should put your credit rating back on an upward trend. If you’d like more tips like these, be sure to contact Fidelity Bank of Florida. Our phone number is 321-452-0011.