Ways To Raise Credit Score

Is your credit score causing problems in securing a credit card or a loan? Looking for tips to increase credit score in order to get the best deals? We at Suburban Chevrolet in Eden Prairie are here to help. Keep reading to learn more about the best ways to raise your credit score today with our finance tips. 

Check Your Credit Reports

The first thing you would want to check is to see if there are any mistakes that have negatively impacted your credit score. For example, there could be an issue such as identity theft, but you’d also want to check in to with one of all three major credit bureaus: Experian, Equifax, and TransUnion.

The Fair Credit Reporting Act entitles you one free copy a year that you can access at AnnualCreditReport.com. 

Assess Your Debts

List out all of your debts so you can get a handle on what exactly you owe. Two determining credit score factors are:

• Your debt to credit ratio: How much available credit you have vs. how much you have actually charged. Ideally, you will want to keep your credit card charge under 30% of the available balance each month. 
• Number of cards with balances: The more cards with balances, the lower your score. 

Create a Payment Plan

Attack your debts with a repayment plan that includes tackling debts in collections, getting rid of smaller balances on your cards, or working to pay down the larger debts. 

Open a Credit Card

Your credit score could also be low because you simply have never had a loan or credit card before. Opening a card in the Bloomington area can help establish credit as long as you keep it under the 30% balance and pay off your bills on time each month. A simple way to improve your credit score is to pick one recurring monthly charge and pay it off.

If you don’t qualify for a regular credit card, consider a secured credit card. This type of card has a small limit and usually requires an initial deposit of up to a couple hundred dollars to open. 

Build a Credit Age 

Your credit score is built over time. If you are starting today, one way to improve or add to your history is to become a user on a family member’s account. This will make your credit score be reflected more positively if they pay their bills on time. 

Minimize New Credit Applications

While we discussed a new card or loan as one of the ways to improve your credit score, you will want to be judicious in applying for new cards or loans. 

Find Out More Ways on How to Get a Better Credit Score

Looking for additional advice or help on how to boost my credit score? Be sure to check out our finance center for more information, or be sure to check out our finance application.