7 Ways to Improve Your Credit Score

2021-09-22T12:46:50-05:00Personal Finance|

Having a healthy credit score is crucial to your financial future. A great score could potentially save you money, and a poor score could cost you. Whether yours is high or low, there’s always room to improve it. (You can find your score on a site like CreditKarma.com.) Here are a few tips for increasing your score:

Check Your Credit Report for Errors

An error in your report can bring your score down. Disputing the error could reverse that. But how do you check? You can get one free credit report from each major credit bureau (Equifax, Experian, TransUnion) once every year at annualcreditreport.com. If you find errors, dispute them with the credit bureau.

Pay Your Bills on Time

Late payments negatively affect your score. To avoid this, set up automatic payments through Connexus Digital Banking. You can pay your bills with the Bill Pay feature and your loans with Transfers.

Narrow Down Your Card Choices

If you have several credit cards with debt, pay off those with small balances. Then use one or two go-to cards for everything. It will make your life much, much simpler.

Make Multiple Payments

Making more than one payment on your account each billing cycle keeps your credit utilization ratio lower. The smaller the credit utilization ratio, the better it is for your credit rating.

Don’t Be Tempted By Discounts

Many stores get you to sign up for credit cards because it saves you a certain percentage on your purchase. Your credit score takes a small hit every time you apply for a new card (regardless of whether you’re approved). Before you agree to applying for a new card, ask yourself if it’s worth the hit to your credit score.

Create a Plan

Sure, you could start doing small fixes here and there for your credit score, but without a plan, you may find your score going right back down where it started. We highly encourage you to work with an expert to get where you need to be. All Connexus members have the option to set up a free consultation with one of our Financial Advisors. Get started here.

Don’t Get Worked Up Over It

Your credit score is important, but don’t let it control your life. Take your time, create a plan, and take simple steps to improve it. If you stay diligent, you’ll see your score go up.