Credit scores take into account years of past financial decisions, not only your current ones. It’s a lot like losing weight. If you want to raise your credit score, it’s about building the right habits and doing the little things right, not making any one huge shift. Here are some steps that, when maintained, can raise your credit score.
Ways to Raise Your Credit Score
- Use credit responsibly – The smaller the percentage of your available credit you use, the better. When you have a high degree of revolving credit, you display that you are in control of your spending habits. In contrast, consistently using most of you credit can signal to lenders that you may be unreliable at paying back borrowed money.
- Set up reminders – At the end of the day, you are only going to follow the tips that you remember to do. As with building any habit, actions cannot lead to lasting change if you do not maintain focus on them over time. Making your payments on time is one of the largest factors in your credit score, so setting up payment reminders can be a big help.
- Spend consistently – Suddenly charging less or more than usual hints at risk to lenders. To assist you, consider setting up an automatic notification once your account drops below a certain level. This can help you monitor spending, an imperative step to raising your credit score.
- Open new accounts with care – Opening new accounts generally lowers your credit score. Especially if you care a new credit user, opening several new accounts in a short time frame can come off as risky to lenders.
Raising your credit score takes patience and discipline, but it is achievable. It is a matter of consistently following guidelines such as the ones outlined above. Over time, any poor mark on a credit report can be forgiven by consistent, good credit since that time.
The Texas bankruptcy lawyers at Julian, Crowder and Shuster help clients escape debt, build good credit, and build a better financial future.