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 for how to give yours a boost.
Find out your credit score
It’s good to know where you’re starting and have a goal. According to Experian, a good credit score is above 700. If you think your score is low, be sure to double check the information the credit bureaus have about you. If any information is incorrect, your credit score will likely improve if you have it corrected. There are multiple sources, like www.annualcreditreport.com, where you can receive your free credit report.
Pay your bills on time
Paying your 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’s best to pay off your balance each month, if possible. Also, make sure you make your monthly payments are on time. This will help your credit score and prevent you from being charged late fees.
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 careful planning, 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. At South State, our bankers are ready to help. Contact your local banker today and get started.
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