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3/7/2023

3 Simple Ways to Boost Your Credit Score

This week, we will be rolling out our #GRGTalks podcast episode with representatives from Olympia Federal Savings, which breaks down the art of lending. One of the major factors that go into securing a good loan is having a healthy credit score.

Your credit score is one of the most important numbers in your life. It determines your ability to get a loan or credit card and can even affect your job prospects. Having a good credit score is essential, but achieving it can be challenging. Fortunately, there are several things you can do to help boost your credit score. Here are some tips that will help you increase your credit score. 

Pay Your Bills on Time

One of the most critical factors that determine your credit score is your payment history. Late payments can significantly impact your score and stay on your credit report for up to seven years. To avoid this, make sure you pay your bills on time. Set up automatic payments or reminders to ensure you never miss a due date. If you do miss a payment, try to make it up as soon as possible and contact your creditor to see if they can remove the late payment from your credit report.

Paying your bills on time is important because it shows that you are reliable and responsible. Lenders want to see that you can manage your finances and repay any borrowed money. When you pay your bills on time, you can build a positive credit history that will help you get approved for future loans and credit cards.

Reduce Your Credit Utilization

Another factor that affects your credit score is your credit utilization ratio. This is the amount of credit you're currently using compared to your total available credit. Ideally, you should aim to keep your credit utilization below 30%. If you have a high balance on your credit cards, consider paying them down or transferring the balance to a card with a lower interest rate. This will help you reduce your credit utilization and improve your credit score.

Reducing your credit utilization is important because it shows that you are not relying too heavily on credit. Lenders want to see that you can manage your finances and not get into too much debt. By keeping your credit utilization low, you can demonstrate that you are responsible with your credit and increase your chances of getting approved for future loans and credit cards.

Check Your Credit Report Regularly

Finally, it's essential to review your credit report regularly. Your credit report is a record of your credit history, and it's used to calculate your credit score. Errors on your credit report can negatively impact your score, so it's crucial to review it for accuracy. Every year, you're entitled to a free credit report from each of the three major credit bureaus. Take advantage of this and review your report for errors or inaccuracies.

Checking your credit report regularly is important because it allows you to spot any errors or inaccuracies that could be dragging down your score. You can dispute any errors with the credit bureaus and have them removed from your report. By keeping your credit report accurate, you can ensure that your credit score is calculated correctly and that you are not being penalized for mistakes that are not your fault.

Improving Your Credit Can Help With Your Home Loan

Improving your credit score can take time, but it's worth the effort. Paying your bills on time, reducing your credit utilization, and checking your credit report regularly can help boost your score and open up new opportunities. Remember, your credit score is an essential part of your financial life, and it's up to you to take steps to protect and improve it. By following these three strategies, you can take control of your credit and achieve a better financial future.

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