Articles

The health of your credit is more critical than ever.  Many credit-challenged people find themselves "frozen" when confronted with what to do. Here are the top five ways to improve your credit!

1. Pay bills on time: Consistently paying your bills, including credit card bills, loans, and utilities, on time is one of the most effective ways to improve your credit score. Late payments can negatively impact your credit history, so set reminders or automate payments to avoid missed due dates.

2. Reduce credit card balances: High credit card balances can hurt your credit score. Aim to keep your credit card utilization rate below 30%, which means using less than 30% of your available credit limit. Paying down your balances and keeping them low demonstrates responsible credit management.

3. Maintain a diverse credit mix: Having a mix of different types of credit, such as credit cards, loans, and a mortgage, can positively impact your credit score. It shows that you can handle different types of credit responsibly. However, only take on the credit that you need and can manage comfortably.

4. Regularly check your credit reports: Monitor your credit reports from the major credit bureaus (Equifax, Experian, and TransUnion) for errors or discrepancies. Dispute and correct any inaccuracies promptly, as they can affect your credit score. You can access a free copy of your credit report once a year from each bureau through AnnualCreditReport.com.

5. Avoid opening too many new accounts: Quickly opening multiple new credit accounts can indicate a higher risk to lenders and may negatively impact your credit score. Be cautious when applying for new credit and only do so when necessary. A responsible and measured approach to obtaining credit is crucial for maintaining a good credit score.