How To: Improve Your Credit Score

If you’ve gone a little overboard with your credit card and find yourself in what looks to be an endless hole of debt, we’re here to help!  Check out some small steps that may go far in improving your credit:

1. Get Your Credit Report. Consumers are entitled to one free credit report a year, so head to www.annualcreditreport.com and get yours!
2. Pay Bills On Time! This seems basic but it is a huge factor in determining your credit score. Even a few days late makes a difference.
3. Keep Credit Card Balances Low. Even with a high credit limit, stick to the bare minimum. If you tend to overspend, leave your cards at home and bring only the cash you have on hand to the mall. Do not open more credit cards in an effort to boost your credit. Creditors look at how long your accounts have been open, so, contrary to popular opinion, new accounts won’t boost your credit score and may make you seem like a risky candidate
4. Learn From Your Mistakes. Just because your habits are improving, this is not an excuse to splurge or overspend again.
5. Write Out A Basic Budget. Rent, car payments, maintenance, clothes, savings are examples of general categories. Keep track of what you spend in a notebook for a few months to get a good idea of where you spend your money and how to cut back or adjust your budget.
6. Choose One Daily Habit You Can Do Without. Try to cut that habit for a few weeks, then decide which you like better. For example would you prefer a gourmet a.m. java fix or some extra bucks in your wallet? Refraining from that daily 12-ounce Starbucks latte can save you up to $1131 a year!