5 Simple Ways To Spruce Up Your Credit Score
Are you ready to buy a home, but need to improve your credit before you apply for a mortgage? Or do you simply just want better credit? Check out these tips to spruce up your credit score this spring.
Know Your Credit Score
You are entitled to a free credit report from each of the three major credit agencies each year. Take advantage of it. Learn about your current credit score and review your credit report for errors and mistakes. If you find any, get them cleared up to improve your score.
Get a Credit Card (if you don’t have one already)
Applying for a credit card is an easy way to boost your credit score. A credit card is considered a revolving line of credit and is a great way to establish financial responsibility. If this is your first card, start small. Get a card with a small limit that you can pay off quickly. Even if this isn’t your first credit card, you don’t want to overextend yourself with a high credit limit.
Pay Down (Or Pay Off) Current Credit Cards
When paying your credit card bills, pay more than the minimum amount due as much as possible. This will bring your balance down quicker and help you pay off your credit card faster. If you are able to pay off your credit card, that’s a bonus! You will see your score jump a few points after doing this.
Consider Installment Loans
Installment loans such as car payments and student loans are good ways to establish and build your credit. Establish a payment schedule with these types of loans and stick to it. As you pay the loan off, you will see your credit score change.
Pay On Time
When you have a monthly bill to pay, always pay it on time. Sticking to your payment schedule helps avoid errors in your credit report and gives you a good score.