6 Ways to Improve Your Credit Score

1. Review your credit report annually. It is important to review your credit report each year. Be sure the report includes all 3 major credit repositories (TransUnion, Equifax and Experian). You will want to make sure the information is accurate and that all of your debt is being reported.

Identify any late payments, collections, judgments and public records (i.e. bankruptcies). Dispute any incorrect information and have it corrected or removed from your credit report. Set up payment arrangements with creditors to settle any unpaid accounts you may have.

2. It is important to have available credit, but overuse can hurt your credit score. The best way to manage your credit is to keep your balances below 50% of your available credit limit. Always make sure to pay more than the minimum payment. By doing these things it will reflect favorably in your credit score calculation.

3. Make sure to have a mix of different kinds of credit. Mortgages and other installment loans affect your credit score more than revolving debt, such as credit cards. This is why it is important to have installment loans in your mix of credit.

4. Limit the number of people who pull your credit report. Each time your credit is pulled the score will decrease. While a few inquiries on your credit report are not harmful to your credit, several in a short amount of time will negatively affect your score.

Be careful when you apply for credit, such as at car dealerships. It is important to ask how many sources they are sending your application to. If it is more than 3 ask that they limit it to 3.

 5. Ask a family member if you can be added to one of their credit cards in order to help you establish credit. This especially applies to individuals who do not currently have established credit. The family member does not have to provide you with a credit card to use, but just add you to their account. Of course, you want to be sure they pay their bills on time.

6. Check your credit card limits. Be sure your credit card limits are being accurately reported on your credit report. If the limit is inaccurate it may look like you are maxed out on your credit card and this will negatively affect your score. If you pay your balance off each month, but almost max out the card each month, you may want to approach the lender to ask for a credit increase. This will help keep your balance below 50% of your available credit, thus helping to increase your score.

Please feel free to call or email us to learn more about how you can improve your credit score 989.892.0658 or ssakon@wirtrivettegroup.com.