Implement These Credit Boosting Habits
Some people discover their credit score is low, and assume there is no point in even trying to buy a home. Well, improving your credit score takes a little effort, but it is certainly possible. Below are a few credit boosting habits that you should begin implementing today!
- Pay Bills On Time – A lot of people are surprised to learn many utility companies actually report to credit bureaus. Electric companies are especially known for doing this. Also, by paying your bills on time you avoid late fees. If you pay a few bills later every month this could easily be $50 or more. That’s money that could be applied toward a credit card balance.
- Keep Credit Cards to a Minimum – There is no reason you need a credit card for every clothing store at the mall on top of your Visa and MasterCard. You have more bills to keep track of and a greater chance of forgetting a payment on one, which will show up on your credit report.
- Maintain Small Balances – At some point, you may be in a situation that requires a huge charge to your card. An emergency vet bill or unexpected car repairs are a couple examples. Do everything you can to pay that balance down. Credit availability plays a role in your credit score. Ideally, you should strive to keep credit utilization under 30 percent of your available credit.
- Monitor Your Credit – You are entitled to a full credit report from all three agencies every year, so take advantage of this. It is not a bad idea to use a credit monitoring platform. They are generally a few dollars a month and give you 24/7 access to your credit and score, and also monitor and notify you of changes.
- Question Your Credit – If you see something on your credit that you know is inaccurate or out of-date don’t ignore it. Equifax, Experian, and TransUnion reports all provide contact information to request points to be reviewed. Also, don’t assume that because Experian removes an error from your credit that the other two will follow suit. You generally need to contact all three.
- Double Up Payments – Obviously, paying twice as much as you need to on any bill is going to decrease your balance but it also puts you ahead. So if life does throw you a financial curve ball, you are not as impacted by it.
When you buy a home, your credit gets put under a microscope. As a result, you want to do everything you can to boost your score. Don’t just wait until the week before you apply for a mortgage – start using these credit boosting habits today.