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Ten Basic Steps to Improve Your Credit

1. Pay your bills on time
Payment history is the most important factor in your credit score, so it’s important to pay all your bills on time, every time. Furthermore, late payments can have a negative impact on your credit score. An excellent way to stay on track is to set up automatic payments. or reminders to help you stay on track.

2. Pay off your credit card balances
High balances on your credit cards can negatively impact your credit score.

3. Keep your credit utilization low
Your credit utilization ratio is the amount of credit you are using compared to the total amount of credit you have available. To increase your credit score, most experts recommend that you a
use no more than 30 percent of your available credit.

4. Avoid opening too many credit accounts at one time
Every time you apply for credit, it creates a “hard inquiry” on your credit report. This in turn can lower your credit score.

5. Keep old accounts open
The length of your credit history makes up a significant portion of your credit score. Closing old credit accounts can shorten your credit history and negatively impact your score.

6. Dispute errors on your credit report
If you find errors on your credit report, you can dispute them with the credit bureau. This can help improve your credit score.

7. Consider a credit repair service
If you have a lot of negative items on your credit report, you may want to consider working with a credit repair service. They can help you identify errors and take steps to have them removed.

8. Avoid closing old credit accounts
Check your credit report regularly. You can get a free copy of your credit report from each of the three major credit bureaus (Experian, TransUnion, and Equifax) once a year. Make sure that the information on your report is accurate and up to date.

9. Dispute any errors you find on your credit report
If you find errors on your credit report, you can dispute them with the credit bureau. This process can help improve your credit score.

10. Consider a credit-builder loan
A credit-builder loan is a type of loan designed to help people build or improve their credit. With a credit-builder loan, you borrow a small amount of money and make monthly payments over a set period of time. As you make your payments on time, you can improve your credit score.

Remember, improving your credit takes time. Be patient and stay committed to making positive financial changes including using your credit responsibly over time, charging only what you can pay off each month, and avoiding maxing out your credit cards or making late payments.