People are always looking to improve their credit scores. It’s very important and raising it by just a few points can work wonders for you financially. For many though, they don’t know where to start or where to focus. That’s why we’ve made this list of five ways you can improve your credit score.
One of the factors taken into consideration when calculating your credit score is how many total balances you have on your credit report. Even if they’re small and you feel they’re not very important, getting them off your books will help your score.
[Learn More: What Credit Score Do I Need to Buy a Car?]
Another factor in your credit score is how much revolving credit you have against how much you’re actually using. You want this percentage to be small. You never want it to be above 30%. Paying down your balances and keeping them low helps keep this percentage low.
Keep Old Debt
A common mistake people make is when they pay a balance off, they want it off their credit report. It’s actually good to keep that on your report. The longer your history of good debt is, the better your score will be.
Pay Your Bills on Time
It’s obvious but it’s still important. Paying your bills on time is the easiest way to raise your credit score. If you have trouble remembering, set up payment reminders so that you don’t forget. When it comes to paying bills, the sooner the better.
Simply checking your credit report won’t raise your score, but it will keep you informed which is important. It’s also not uncommon for there to be errors on your report that could lower your score, so be sure to check all the information to make sure its correct.