03/26/2023
๐จ๐จCREDIT TIP๐จ๐จ
5 TIPS THAT CAN INSTANTLY INCREASE YOUR CREDIT SCORE
Most people think they "don't need" to use credit.
However, credit is everything, if you are ever looking to buy a house, a car, etc, lenders need to see some history of your credit!
So this has led me to my first tip:
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๏ธ. Make your payments on time! Your payment history accounts for 35% of your credit score, it is EXTREMELY IMPORTANT. You can put your accounts on auto-pay.....
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๏ธ Lower your credit utilization to 30% or under(i.e. the credit limit vs how much you owe on that credit card). Your credit utilization is 30% of your credit score. Start by lowering your credit card balances, ask for a credit limit increase and get them paid off!
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๏ธWork on your "mix" of the types of credit (i.e. revolving vs. installment).
For example, credit cards are "revolving" and the payment amounts can vary slightly month by month.
Loans are installment based, or fixed, payments that don't change each month.
So for example, if you don't have any revolving credit on your report, get a primary credit card.
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๏ธ Keep your inquiries down. Every time you apply for credit, an inquiry hits your credit report.
Typically, you want to have 1-3 Inquiries every 24 months, and they come off in 24 months.
Note: If you discover hard inquiries on your report, you have the legal right to challenge something on your report that is not yours.
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๏ธWork on the "age" and history of your credit - if you don't have a lot of credit history at the moment, start building it NOW!
If you have a goal to purchase a house, car or want to increase your credit score for more opportunities then shoot me a DM and letโs see if I can help!