SeaComm Federal Credit Union OFFICIAL BLOG

4 Steps to Help Boost your Credit

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We may be 1 month into 2018, but it’s not too late to add another resolution: improving your credit. Take these 4 simple steps to improve your financial standing, and give you more peace of mind.

Check your credit report, and make sure it’s accurate. Believe it or not – credit reports can, and often do, have mistakes on them. According to the Fair Credit Reporting Act, you’re entitled to a free copy, once a year, of all three of your credit reports (Experian, Equifax, and TransUnion.)

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When dissecting your report, it’s incredibly important to make sure that all of the information is accurate, because if there is a mistake, you’re credit score will reflect it.

Most credit scores operate within a range of 300 to 850:

Excellent Credit: 750+
Good Credit: 700-749
Fair Credit: 650-699
Poor Credit: 600-649
Bad Credit: below 600

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Determine what you need to improve. If your credit report is accurate, but you still have a score that could use some improvement, it’s important to understand why. A glitch on your report could be for a variety of reasons, like: payment history, amount of debt, age of accounts.

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Focus on what you need to improve. If you have outstanding debts, and have a routine of making the minimum payment, change it up. A great way to decrease your debt and improve your credit is to pay twice a month. For example – if you have a credit card that earns you points or cash back – great! But instead of accumulating a balance and riding on it for months, schedule a payment to be applied to your credit card account at least twice a month. This will show that you’re attentive to your debt and active in paying it off.

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Increase your credit limit. If you’ve recently gotten a raise, a new job that pays more, or have just come into more money, ask for a credit limit increase. Refer to the old saying – “The best time to ask for new credit is when you don’t need to.” Should you be granted this extra credit, don’t be in such a rush to use it. It’s always important to have more credit than liability – which will reflect well on your credit report.

In contrast – if you’re not earning enough to warrant a credit increase, simply put all of your financial energy into paying off new and old debts. Dedicating the necessary time to eliminate these debts will inadvertently increase your available credit.

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