If you have been struggling to successfully improve your credit score to no avail, here are some handy tips to consider as we move into the New Year.
Take Action Against Credit Card Balances
Your credit score is often times impacted by your spending habits across your credit lines.
This means that if you use your credit cards and do not pay off the balances right away, the rotating balances across all of your cards will have a negative effect on your credit score.
By paying off any small balances lingering across your credit cards, you will be able to free extra credit and give yourself the opportunity to allow your score to grow over time.
Limit your Balances Overall
Another major factor on your credit score is the amount of revolving available credit you have available versus how much is being used.
In order to keep your debt ratio at an optimal level, be sure to pay off or pay down your balances as much as possible. The smaller the percentage of used credit to available credit, the better it will be for your credit score over time.
By showing that you can keep the amount of debt you maintain limited over time, the more a creditor could be likely to lend you money.
Pay Your Bills On Time
It may come as no surprise that paying your bills on time will only benefit your credit score in the long run.
Paying your bills late can lower your credit score, making it harder to be approved for loans and other credit options in the future.
Improve the timeliness of your payments by scheduling to pay your bills on the same one or two days each month. Paying all of your bills on one or two set days each month will reduce the amount of time spent it takes to pay your bills. Also, by putting it in your calendar, it will help to remind you to pay your bills before they are due.
Developing positive credit management habits now is one of the best things you can do for your financial success in the future.
If you have any additional questions regarding your credit score or have questions about managing your debt, ask to speak with a Member Advisor in a branch or call us at 800-835-3400.
We are here to help you on your financial journey.