Five tips for improving your credit
Monitoring your credit report and credit rating is important, especially if you’re considering a large purchase or looking to lease. Here are five tips for improving your credit. It’s not about quick fixes, but responsible financial activity over time.
- Get a credit card: OK, this may seem counterintuitive, but let me explain. When used correctly, a credit card can be an effective tool for building credit. Charge a few budget-conscious purchases each month, and pay the balance off before your due date.
- Keep your balance low: This is the other side of the coin with credit cards. Try to only charge for items you could pay for out-of-pocket, and try to stick to a balance of only 10 percent of your credit limit.
- Fix credit errors: You’re entitled to free credit reports each year, so take advantage and review your report for any possible errors, such as incorrect limits or closed accounts.
- Leave paid debts on your report: Paid off debts like car loans show that you have a history of paying your debt on time.
- Ask! If you’re looking to pay off a debt quickly, it can’t hurt to ask the lender to lower your interest rate. You can’t get what you don’t ask for!