How To- Improve Your Credit Score

Your credit score is made up of 5 things:
1. your payment history (including on time or late payments)
2. the percentage of available credit you are using
3. your credit history
4. the types of credit you are using
5. how many hard pulls on your credit

To improve your score these easiest things to change are:

1. Pay down the balance on your cards.
This has a major impact on your score. One way is to pay more than the minimum balance while not using the credit card on new purchases (or you can pay more than the minimum balance PLUS an amount equal to any new purchases).
I have a great debt spreadsheet that can help you prioritize which credit card to focus on first.

2. Check your credit reports.
There are so many opportunities for incorrect information to appear on your credit reports. Open a free account with each credit bureau and check for accuracy. If you find something erroneous, dispute it. It is super quick and easy.

3. Be strategic when asking for new credit.
You can use creditcards.com to see which credit cards will consider your credit score, to see options for rewards categories, or to see annual fees.
Ask loan officers for debt-to-income and credit score guidelines BEFORE applying for credit. If you do not meet the guidelines, do not apply.
I can help you determine both of these numbers.
Any time you apply for a loan or credit card the company is going to do a “hard pull”, which means the request will appear on your credit score. More than 3-4 hard pulls every 2 years will negatively affect your credit score, albeit fairly minimally.

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