Your credit score may impact: Your ability to get a credit card Your ability to…
Improving your credit score
What may improve your credit score
- Checking your credit report and correcting any errors.
- Consistently paying your bills on time. You may want to set up payment reminders or online bill pay to help you pay your bills on time.
- Paying down what you owe.
- Keeping credit card balances low. How much credit you have available is an important scoring factor, so keep balances as far below your credit limit as possible.
- Only applying for and opening new credit accounts when they’re absolutely necessary.
- Having a mix of credit cards (revolving credit) and loans (installment credit).
What may lower your credit score
- Paying some bills late
- Having credit cards balances near your maximum spending limit
- Applying for new credit cards frequently, whether you need them or not
- Having a very brief credit history
- Exceeding your credit card spending limit
- Closing accounts that have been open the longest
Improving your credit score takes time. It is really about forming good payment habits and building a consistent credit history.
If you are working on your credit you may want to consider a secured credit card. These cards require a security deposit equal to the credit line. Unlike prepaid cards, payments and activity will be reported to the major credit bureaus.