Friday, 24 September 2021

SaveItUp Moment – How to Build/Repair Your Credit Score

SaveItUp Moment – How to Build/Repair Your Credit Score
31 Jul

Hi, this is Andy Mattingly and in today's SaveItUp Moment we'll be talking about How to Build and Repair Your Credit Score Everyone should strive to have a score of 700 or higher

Having a better score allows you access to better interest rates and maybe even other lending opportunities These things we are going to talk about today may take nine months or more help repair your credit, but the sooner you start the better it will be and less difficult it will be to repair your credit The first thing is you need to stop having late payments If you have any payments over the grace period it's going to be reported on your credit score so you need to make sure you stop having any late payments whatsoever The next thing is don't close all of your accounts that you've paid off

Your credit score is a combination of several things but you want to keep some of your older credit out there even if it's paid off so it shows that you've had credit for a length of time That will help your score Fix your credit utilization ratio This means that if you have high balances and you're using up all the limits on your credit cards, make sure you start paying those cards off and keeping those limits out there because your goal is to be about 30% utilization on your cards So one good way that you can help improve your credit score is keeping your utilization lower

Apply for credit sparingly if you have a lower score and you start applying for a lot of credit, all of those credit inquiries are going to build up and it's going to look like you're trying to build credit everywhere This can bring down your score, so apply for credit sparingly – only when you need it – to make sure that you don't have a lot of inquiries on your account The last one is have different types of loans or credit If you have revolving credit cards and store charges, make sure you also have an installment loan or an auto loan It shows that you can handle different types of credit

If you pay them all on time as agreed, it's going to help your score and you are going to get to that 700 level a lot sooner That's been this week's SaveItUp Moment If you want any more information on this topic or any other topic make sure you visit the SaveItUp page at forumcucom

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