How to Get a Better Credit Score

If your credit score is less than perfect, how do you work your way back up? There are plenty of ways to raise a credit score, and some are much easier than you might think! Take a look at a few smart and strategic tips to increase your credit score, so you can get one step closer to your financial goals.

Check Your Credit Reports

Learning how to get a better credit score is equal parts patience and diligence, and a good first step is to check your credit report. The Fair Credit Reporting Act entitles you one free copy a year from all three major credit bureaus: Experian, Equifax, and TransUnion. Many Republic and Ozark are shocked to find errors on their credit reports that can be easily corrected, so don’t overlook this step! 

Assess Your Debts

Next, it’s time to tackle your debts. While debts can feel overwhelming, you can take small steps to organize your finances and eventually improve your credit score. 

• List your debts: What are your current debts? Whether small or large, make a list of all of your debts with the amount owed. This lets you know exactly what you need to address moving forward. 
• Your debt to credit ratio: What is your debt to credit ratio?This means how much available credit you have vs. how much you have actually charged. Experts recommend keeping your credit card charges under 30% of the available balance every month. 
• Number of cards with balances: How many credit cards do you have open right now? The more cards with balances, the lower your overall credit score. 

Now that you have a broader picture of your finances, you’re ready to create a payment plan. You can start with the smaller debts to get them out of the way, or speak with lenders about ways to incrementally pay off larger sums.

Manage Credit Cards

Credit cards can be a benefit or a drawback to your credit score. Here are the reasons why:

• No Credit Cards: If you’ve never had any loans or credit cards, you probably have low or no credit. Opening a credit card can be a good way to demonstrate your financial responsibility, as long as you pay promptly. Consider a secured credit card if your score is low.
• Too Many Cards: Every time you open a new credit card in Nixa, lenders do a hard inquiry of your credit that decreases your score. Don’t open more credit card accounts than you need for the best results.
• Shared Accounts: If you have a family member with good credit, you can also share a credit card with them to boost your credit score. But keep in mind that your credit habits will influence each other’s score, so choose your account partners wisely.

Learn How to Boost My Credit Score at Corwin Chrysler Dodge Jeep Ram of Springfield

Want more tips and tricks on how to get a better credit score? Contact us at Corwin Chrysler Dodge Jeep Ram of Springfield, and our finance team would be happy to help. You can also check out our car buying tips or stop by our dealership in Springfield for in-person assistance.