Today it is becoming increasingly difficult to either earn an excellent credit score or maintain one. Having a good credit score has so many benefits, including obtaining a lower interest rate on loans, such as your mortgage. Let us take a look at some straightforward tips to improve that credit score.
- Paying the bills on time - Paying on time will help your credit score. Delinquencies have a negative impact on your credit score
- Limit your charges – Limiting your charges to less than 30% of your credit limit can increase your credit score. The lower the better
- Pay down your credit cards - Paying down your credit cards is an easy way to get your score higher
- Get a copy of your credit report - It is important to keep track of your credit score. You are allowed to download a free copy of your credit report annually
- Do not close out your old accounts - Keep open an old account open. Try to make a small purchase on it every month and then pay it off right away. It is better to keep an old account open then to open a new account
- Dispute any errors – If there are mistakes on your credit report dispute them right away
- Installment loans – Having both types of credit, revolving and installment (personal loans, mortgages, and car loans), shows responsibility to the credit bureau
Improving your credit score will not happen overnight, but taking these small steps will help! If you are looking for more information about credit opportunities stop by our website to cCheck out Standard Bank’s Credit Cards or stop by a branch for more information.