How to Boost Your Credit Score

canstockphoto56402801-e1416936133774

How to Boost Your Credit Score

1. Fix any errors on your credit report immediately

Carefully read through your credit report each time you get it to make sure all of the information is accurate. If you notice any discrepancies (incorrect address, accounts you don’t recognize, even misspelled name, etc), contact the credit reporting agency immediately to open a dispute.

2. Pay your bills on time

If you have trouble remembering due dates, set up auto-payments to be deducted directly from your checking account. Credit agencies can tell how late your payments are, and the longer you take to pay, the more it hurts your score.

3. Stop increasing your debt and start paying down your balances

Sure, it’s the most obvious tip, but it’s also the most powerful. Every other trick in the book won’t boost your score as much as this one.

4. Don’t close old accounts

It may seem counter-intuitive, but closing an old account you’ve paid off can actually hurt your score as it will no longer count towards your credit history. If you’ve got old cards you haven’t used in forever, charge something on them now and then (and pay it off immediately) to keep your credit history strong.

5. Establish good credit

If you do it right (paying off the balance in full each month), opening a secured credit card, gas credit card, or store credit card can help you establish good credit and boost your score. Again, this is only if you’re able to totally pay off the balance each month, so never charge more on these cards than you’d be able to pay in cash.