Improving your financial health is like improving your physical health. It takes time, planning, and tools. These tips could help you get started:
Make on-time payments: Your payment history is the single biggest factor in determining your credit score. Late payments can hurt your score significantly, so focus on paying your bills on time.
Pay down credit card balances: It’s recommended that you keep your credit card balances below 30% of your credit limit. If you’re carrying high balances on your credit cards, try making more than the minimum monthly payment to pay them down.
Avoid opening multiple new accounts at the same time: FICO considers borrowers who open multiple accounts within a short timeframe to be riskier to lend to, which could lead to a decrease in credit score. For this reason, it’s wise to only open new accounts when necessary.
Keep unused credit card accounts open: Part of your credit score is determined by the average age of your credit accounts. The longer the average age, the better for your score – so it helps to keep older accounts open, even if you don’t use them regularly.
Diversify your credit mix: Lenders like to see that you have experience with different types of credit like revolving credit accounts and installment loans. While it’s not worth opening a new account just to improve your credit mix, it’s something to keep in mind when you’re working to improve your credit health.
Begin your journey to better financial health by unlocking your credit score and accessing our suite of financial resources designed to help you reach your goals. Get started today.