Keeping good credit can be hard, and the path to establishing better credit can be mysterious. What can I do to raise my score over time? I’m glad you asked. The following 4 tips will guide you on your journey to build the FICO score you’ve been dreaming of!
PAY BILLS ON TIME. This one’s easy. Use auto-pay through your bank or creditor or some kind of bill pay app to stay ahead of the game. You may think “a couple days here or there isn’t going to end the world,” but on time payments help to boost your credit worthiness.
USE ONLY ABOUT 35% OF YOUR CREDIT LIMIT. This may be tough if you are close to your credit limit, but try to keep your balances high enough to show you can handle credit, but low enough to prove you can be trusted with it.
MATURE ACCOUNTS. Keep accounts in good standing for a long time. This gives prospective creditors faith in you as a valuable customer.
MULTIPLE & VARIOUS CREDIT/LOAN PRODUCTS. Don’t limit your credit to just retail accounts. Do your best to build with different kinds of account. Examples: auto loans, student loans, furniture purchases, mortgage loans, and gas station credit cards. There’s no need to have one of each, but variety helps.