Ah, the elusive credit score. We all know that we should have good credit scores. A credit score can do a lot for you – it can make it easier for you to rent an apartment, buy property, purchase a car, and so much more. But improving and maintaining your credit score can be a tricky process. Luckily, there are lots of great tips out there to help you. If you are hoping for a fresh start and to reach significant financial goals in your life, improving your credit score is a great place to start. Learn more about improving your credit score on this page.
What is a Credit Score?
A credit score is a number from 300 to 850 that is a measure of your credit worthiness. It is something that lenders use before deciding to approve a loan, because it is an indication of how willing or able a person is to pay off their loans and credit. The score is calculated by considering factors such as the length of your credit history, your payment history, types of credit, what you owe, and more.
It is important to improve your credit score to at least 700, which is widely considered “good credit.” This will give you a better chance of being approved for loans at a low interest rate.
Improving Your Credit Score
While improving your credit may seem daunting, there are many simple and actionable steps that you can take in order to do this. First, it is a good idea to get a baseline of where your credit score is at. There are many places online where you can check your credit score. Alternatively, you can reach out to FICO, which is the company that oversees the most commonly used form of credit (the FICO credit score). Once you understand where you are, you will also be able to set goals for where you want to go.
If you are starting from square one and you want to build credit, you need to establish a credit history. Getting a credit card is a great place to start. Having a credit card and paying it off on time will show that you are responsible, and can have a positive impact on your credit score.
Speaking of paying on time, this is one of the simplest but most effective ways to improve your credit score. Think about your recurring bills – your rent or mortgage payment, your car loan, your utility bills, your credit card bill, etc. If you can pay all of these bills on time, it will improve the payment history element of your credit score. Late payments could stay on your report for years!
You can also improve your credit utilization by making small, frequent payments. If possible, you might consider making multiple smaller payments over the course of a month instead of one large one. Making frequent payments means that at any one time, you are not carrying a huge balance on a credit card or a loan.
Another tip is to get a higher line of credit. If you have a high line of credit, but you do not spend much of it, this also helps your credit utilization.
Your Fresh Start
These are just a few tips to improve your credit score and get started on your second chance. There are so many ways to improve your life, such as improving your credit score or erasing your criminal history through a Connecticut pardon. If you are interested in opening more doors for yourself with a pardon, contact me for more information. Improving your credit score is also a great achievement that will look good on a pardon application.