Loans, rentals, and even how much you pay in utilities can all depend on ONE number: your credit score! But managing it is PURPOSELY complex. Here are some simple ways to boost that all-important number.
#1: Check your credit report for mistakes.
As many as 1 in 5 people have an INACCURACY on their credit report that’s hurting their credit. You’re entitled to a free credit report every year – go to AnnualCreditReport.com so you can see and fix any mistakes! Some companies will ask you to PAY for a credit report, but don’t be fooled! It should be FREE.
#2: Negotiate debt.
If you do find some unpaid debt on your credit report, it’s likely TANKING your score. Don’t ignore it! Reach out to the creditor and see if they’re willing to negotiate your debt or offer some kind of payment plan. They want to get SOME money out of you rather than none, so they’re often willing to negotiate.
#3: Use your credit card wisely.
If you’re bad with temptation, don’t get a credit card. But using a credit card regularly, and paying it off every month, is GREAT for your credit – and you can earn rewards, too. You have to keep your utilization low, though! Wait – what’s utilization?
#4: Manage utilization.
The percentage of your credit card limit that you’re currently using is called your “utilization.” For example, if your credit card limit is $1000, and you’re using $400 of it, that’s 40% utilization.
Keeping your utilization BELOW 30% will boost your credit!