Improving Your Credit Report

Follow these tips in order to improve your credit report and history.

Credit report with score of 672 on it

Your credit score is an important factor in your financial life. The higher your scores, the more likely you are to qualify for loans and credit cards at the most favorable terms, which will save you money.[1] Follow these tips when it comes to improving your credit:

  1. Create a plan to make payments on time – whichever way is best for you.
    • Use a calendar and automate your payments.
    One way to keep track of payment due dates is to use a calendar, marking days you have bills due, and checking them off once you pay them. This can be done using a smartphone calendar that will alert you when bills are due. You can also set up automatic payments to keep track of your bills without having to manually make payments.
    • Use a budget-tracking app to stay on top of your finances.
    Use a budget tracking app or website to help you stay on track. A budgeting app such as Money Manager can help remind you of expenses that aren’t on a regular payment period.
  2. Don’t apply for too much credit.
    If you are following your budget and getting payments in on time, opening another credit card can be a strategy to help increase your overall credit limit. However, opening a new credit card is a hard inquiry on your credit report, and too many inquiries in a short period will negatively impact your credit score.
  3. Check your score periodically.
    The best way to keep track of your progress is to periodically check your credit score. One option to check your score is by purchasing an annual report through each of the three credit bureaus (Experian, TransUnion, and Equifax). Check that everything is accurate when you receive the report and contact the credit bureau if you notice any activity you didn’t initiate.
  4. Talk to a credit counselor

    Consider meeting with a credit counselor who will evaluate your credit, debt and budget to help you make positive changes in order to improve your credit report. This will not affect your credit score and they can advise you on ways to better manage your finances.

With these tips, you can improve your credit report for life. A good credit score can open doors for you – helping you qualify for the best interest rates and terms, to influencing how much you pay for life insurance, the possibilities are endless.

Sources:
How to Improve Your Credit Score, Experian