Ways to Boost your Credit Score

Nowadays having a good credit score is important; it can assist in lowering your borrowing costs and help you pay less for insurance. Sometimes it can even help you get a job! Lenders, insurance companies, and a number of employers use credit information to make their decisions. What is the best way to boost your credit score? Here are some things that those with high credit scores share:

Pay Bills On Time

Payments that are paid on time can provide a big increase to a person’s credit score. On the other hand late payments can significantly lower it.

Check Credit Report Frequently

Credit bureaus can sometimes make mistakes, so you should check your credit report at least once a year. This is vital in making sure the right information conveyed to the credit bureaus. Your credit score reflects the value of your credit record and a mistake could potentially lower your credit score.

Use Credit Sparingly

Try to use only a small percentage to credit available to you. Credit cards that are maxed out or have balances nearing a credit limit will lower your credit score. Those with a higher credit score will often receive lower rates for mortgages and other types of loans. They could also get lower premiums on some types of insurance policies. A higher credit score may also benefit you in your job search, as almost half of U.S. employers conduct credit background checks on applicants. If you have found yourself on the other side of things and need to improve your credit score there are some ways to do that.

• Prioritize Extra Payments on Maxed-out Cards – when you have the money to pay down your balances, you should focus on the cards that are closest to maxed out. This will benefit your score the most.
• Don’t Miss a Payment – If all you can afford to pay is the minimum payment, you are better off doing that than not making a payment at all. This way it is still counted as an on time payment.
• Don’t Neglect your other Payments – Be aware of what accounts are being reported to credit bureaus and be sure you are paying on everything.

Whether you are just starting out with credit, need a little boost or want to maintain a good credit score, these steps may help that credit score stay in the green.