10 Tips and Strategies To Improve Your Credit Score
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Your credit score is a key indicator of how risky you are to lenders and creditors considering extending you a loan or line of credit. Because these entities don’t know you personally, all they have to go on is a review of your previous payment history and other related behavior.
FICO is the most commonly used credit score, so that’s what we will focus on here. Your FICO credit score will typically fall between 300 and 850 based on your credit history. Anything above 750 is considered excellent credit, but a score of 600 or below makes you a poor credit risk.
If your credit score isn’t where you would like it to be, there are some things that you can do to improve it. By implementing these strategies, you can reap benefits including lower interest rates on loans and the ability to secure higher credit card limits.
Tip #1: Pay Your Bills on Time
One of the best ways that you can improve your credit score is by paying your bills on time. In fact, payment history is one of the primary categories reviewed by the credit card bureaus when determining your credit score. It accounts for 35 percent of your credit score!
Payments that are delinquent (even if only by a few days) can have a negative impact on your credit score. It can be beneficial to set reminders if you have trouble remembering which bills are due when. More