5 Tips for Building a Better Credit Score

How to build a better credit score

Having a good credit score is something we know we should have.

It’s an important part of making big purchases, like a new car or home and getting approved for credit. Building good credit is a continuous process, and we have some tips on how to give yours a boost.

Find out your credit score

It’s good to know where you’re starting. Double check the information the credit bureaus have about you. If any information is wrong, you can help your credit score by having it corrected. There are multiple sources, like https://www.annualcreditreport.com, where you can receive your free credit report.

Pay your bills on time

Paying bills on time is the easiest way to ensure your credit score moves in the right direction. Make yourself a schedule to prevent missing due dates. Setting up automatic payments can help ensure you’re always on time.

Control your credit card debt

Keep your credit card debt consolidated and under control. Having multiple credit cards with small balances on each will work adversely on your credit score. It is best to pay off your balance each month, if possible. Also, make sure your monthly payments are on time. This will help your credit score and prevent you from being charged a late fee.

Open another form of credit

Your credit score is partially based on your credit history and your debt capacity. Having multiple types of credit is good, as long as you manage the payments and pay it off on time.  For example, a second credit card, like a department store card, or an auto loan are both good options. The most important part is to ensure you aren’t overwhelmed and can make the payments on time.

Work to pay off debt

Moving debt around doesn’t help your credit score, so your goal should be to pay it off. Improving your credit score means rebuilding your credit history, so minimizing outstanding debt and not applying for credit you don’t need will help boost your credit score.

Improving a credit score can take time and needs a plan, especially if you are applying for a loan in the near future. The stronger your credit score, the more likely you’ll qualify for credit cards with lower rates and better rewards, obtain better car insurance rates and even get a job or your dream home.

  • This content is general in nature and provided for informational use only. Content may be used in connection with the advertising and marketing of products and services offered by SouthState Bank, N.A. and its subsidiaries and affiliates. This is not to be considered legal, tax, accounting, financial or investment advice. You should seek individualized advice from personal financial, legal, tax and/or other professionals, as appropriate depending on the specific facts of your situation. We do not make any warranties as to the completeness or accuracy of this information and have no liability for your use of this information.

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