Q: How Can You Improve Your Credit Score?

Here are some easy ways to improve your credit score.

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We always hear how important our credit score is, but how does it work? 

Bad credit is usually acquired by missing payments or defaults. First, let’s talk about missing a payment. It’s one of the most important things to watch in your life. It’s crucial to pay your bills on time if you want to improve your credit score, particularly your house payment. 

You should make every effort to get this paid on time, especially if you plan on buying a home in the future. It can take up to nine months to recover from just one missed payment.

"If you’ve gotten a paycheck loan, this will negatively impact your score in the near future."

Additionally, it’s important to keep a close eye on your credit card balances. The balance should be no greater than 50% of your limit at any given time. 

You should be checking your credit score every year. If it’s around 750 or higher, you’ll get the best interest rates on loans, insurance, etc. The rules have changed a little bit lately, particularly if you’re someone who gets paycheck loans. The new credit score rules will take this into account and can affect your score in a negative way.

If you’d like to learn more about how to build your credit or improve it, we’d be happy to connect you with an expert in the area who can help answer your questions. If you have any other questions related to real estate, don’t hesitate to give me a call or send me an email. I look forward to hearing from you soon.