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Quick Tips to Help Improve Your Credit Health

Your credit health plays a major role in many areas of your life. It can affect your ability to get a mortgage or a car or student loan. If your credit score is less than ideal because of a few past mistakes, a few tips can help you get back on track.

Increase Your Credit Limit

Several factors contribute to a good credit score. One is your credit utilization ratio. Credit utilization is the percentage of your total available credit that you’ve used. You should aim for a utilization rate lower than that—generally, the lower, the better.

Requesting a credit limit increase from your card issuer is one way to help improve your credit health. The flip side is that the card issuer might perform a hard-inquiry credit check that may affect your credit score.

Pay Down Debt Faster

Paying down your existing debt quickly is a good way to attain a higher credit score over time. Make a plan by starting a budget. Figure out how much your fixed expenses are each month. As you eliminate more debt, you’ll lower your credit utilization ratio.

Use a Balance-Transfer Credit Card

If you have cards with high interest rates, you’re probably struggling with finance charges each month. This can make it difficult to pay down balances. One option would be to apply for a balance-transfer credit card. Many companies offer 0 percent APR (annual percentage rate) for the first 12 to 18 months. It’s important to use these cards wisely and not as a crutch.

Monitor Your Credit Report

You’re entitled to a free credit report every 12 months. Always take advantage of this because reviewing your report can help you spot possible inaccuracies and even signs of identity theft.

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Source: 06/13/2018 –