Knowing how to improve your credit score essentially increases the chance you’ll have a positive financial future. Lenders use your credit score when evaluating loan applications. In short, a high credit score has a major impact on loan approval and the interest rate. We here at Corwin Dodge Ram have a few ways you can improve your credit score.
Keep Balances Low
The total amount you owe on your open credit accounts can impact your score dramatically. High amounts owed are a red flag to many lenders and could influence whether or not you get the loan. The amounts owed portion translates to a whopping 30 percent of your credit score. Keeping balances low and paying for high balances is one way to improve your score over time.
Pay Bills On Time
Missing payments is a major red flag to lenders of all sizes. While one missed payment won’t send your credit score through the floor, multiple will have a dramatic impact on your overall credit score. Your payment history accounts for 35 percent of your score. Do you best to pay your bills on time.
Check Your Credit Report
Checking your credit report every now and then won’t have a major negative impact on your score. In fact, checking once a year is a good safety precaution. It could help you spot errors, which you can then contest and have removed from your credit report. In the end, checking your credit report can help improve your score.