4 Habits That Will Improve Your Credit Score
Need A Credit Score Boost? Here Are 4 Important Things To Remember
If you are looking into credit repair in St. Louis, chances are that you want to improve your current credit score. Credit scores are anything but random, and they can influence everything from the type of home you move into to whether you can find a new job. Your FICO score takes into account payment history, amount owed on debt, length of credit history, and how much new credit you have. Building solid financial habits is the best way to work on raising your score. Best of all, you can start building these habits now.
Late Payment? Make It Within 30 days.
In most cases, companies do not report late payment to credit agencies until the payment is 30 days late. Missing a payment can take a huge toll on your score. The higher your score, the more it is likely to drop when you make that late payment.
Recover For Late Payments By Paying
If you fail to pay your bill at all, your debt may be considered charged off. This means that the debt is turned over to a collection agency, which marks your score significantly. Even if you pay off the debt, the negative ding could stay in place for up to seven years.
Don’t Max Out Your Credit Card
The amount you owe your creditors is 30% of your FICO score. This is your credit utilization, and that percentage is important to creditors. Your best bet is to keep your credit utilization below 30%.
Carry Your Balance Low
It is important that you do not just pay the minimum amount due on your credit card. Otherwise, you may find it more difficult to pay off your cards for those times when you really need them.
Maintaining a good credit score may be difficult, but you can do it when you are making small steps each day toward having a healthy credit score. Do you have questions about improving and maintaining your credit? Contact us to learn more.