Improve Your Credit Score in 3 Simple Ways

It’s your lucky day, we have some tips for you on how you can improve your credit score!

Are you looking to buy a home? Take out a loan? Or be approved for new lines of credit? First, you’ll want to make sure that your credit score is in a good place. The better your credit score is, the more opportunities you’ll have for lower interest rates and saving money in the future. Let’s walk through 3 tips to ensure your credit score is in tip-top shape!

1) Utilize 30% of Your Credit Limit or Less

One way to raise your credit score is to make sure the monthly balance on your credit cards is paid in full. If you’re unable to do that, make sure the total balance is 30% or less of the credit limit. The lower your credit utilization is, the better. Many credit card companies offer a “high balance alert” feature which will notify you if your balance is getting too high. Another way to lower your credit utilization is to ask for a credit limit increase.

2) Consolidate High-interest Debt to Improve your Credit Score

You can also increase your credit score by consolidating your high-interest debt. Credit card debt consolidation transfers your credit card balances to one monthly payment. By paying off your credit card balances, you are decreasing your overall debt which in turn, will improve your credit score over time. In fact, it is wiser to have less debt before applying for a new line of credit. Less debt lowers your DTI ratio, a factor used in the approval process. Large amounts of debt may discourage potential lenders from approving you for a line of credit.

3) Dispute Any Incorrect Information

Take a deep look through your credit report to make sure everything is accurate and free of any suspicious activity. You can do this by requesting a free credit report from the three major credit bureaus (Experian, TransUnion, and Equifax). If you notice any entries on your credit statements that are not from you or are misreported, file a dispute with each bureau to get them corrected. While credit report inaccuracies are not very common, clearing your name of them if they are present will help you to improve your credit score.

How to Improve Your Credit Score

Improving your credit score does not happen overnight. However, with consistent efforts to improve it, you will be there before you know it. We hope that our tips have given you some insight on how you can obtain a higher credit score and open up new possibilities for loans and lower interest rates!

If you’re looking to buy a home, we offer flexible mortgage products. See what financing options are available here!