Simple ways. to boost your credit score.

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1 Simple ways to boost your credit score.

2 Table of contents Introduction Pay your bills on time Get regular credit report updates Keep your credit utilization low Leave old credit cards open Limit opening new accounts NOTE: Skip to any section by clicking on the numbers above.

3 Your credit score determines your entire financial life. From being able to secure a loan with an affordable interest rate to getting a lower premium on your insurance, a high FICO score is your key to financial well-being. Here are 5 easy ways to boost your credit score.

4 Pay your bills on time. When it comes to your credit score, nothing is more important than on-time payments. Payment history makes up a whopping 35% of your credit score that s huge. And, while you unfortunately can t go back in time and fix your history, you can absolutely work to improve your score from here on out. From this moment forward, pay your bills when they are due. Every. Single. Time. As your on-time payment percentage goes up, so will your score. TIP: Enroll in automatic payments or ACH payments for all recurring debt. This ensures that payments are always made on time and reduces the hassle of paying your bills.

5 Get regular credit report updates. Subscribe to a service that keeps you in the know about your credit score. It may be painful at first, but you ll learn to love being informed of inquiries, payment history, and new activity. Plus, most services offer an online dispute form, which is an easy way to get inaccurate items removed in a timely manner. This is also an excellent way to fight identity theft because you can tell the agency to get your permission before they pull a credit report on your account. TIP: AnnualCreditReport.com gives you a truly free credit report once per year, with no recurring fees or costs. Many credit card companies offer regular credit score updates you may want to check to see if yours is included.

6 Keep credit utilization low. When a few thousand dollars are available to you, it s hard not to touch it. Stay strong. Revolving credit availability makes up 30% of your credit score! Loan balances and level of debt are compared to your overall credit limit. Once your credit utilization is above 50%, you ll see it negatively affecting your score. For example, if you have a $10,000 credit limit on your card, you should keep your balance at $3,000 or less. At $5,000 it will affect your score. If you use personal credit cards for your business, this might keep your revolving credit too high. One solution is to make a weekly payment it helps maintain cash flow and prevents the balance from reaching more than 50% of your credit limit. TIP: Don t wait until your credit card statement comes to pay the balance due. Make small payments throughout the month to maximize your cash flow.

7 Leave old credit cards open. Still haven t gotten around to closing that credit card you paid off after college? Turns out, it could be doing wonders for your credit score. When you close an account, your credit availability is reduced, making your credit utilization rise and your score plummet. Not to mention that the age of your account contributes to 15% of your overall score. So a longstanding account with 100% available credit is exactly what you want. TIP: Use the card once a year and pay it off when due. That way the credit grantor won t close your account and the amount of credit available to you will benefit your credit score.

8 Limit opening new accounts. Only open a new account when absolutely necessary. Remember when we talked about age of account being 15%? Well, reporting agency s look at the age of your oldest account, and the average age of all your accounts. New accounts will bring down your average account age. Plus, credit inquiries make up 10% of your score. New accounts come with new inquiries and combined, they can quickly tank your score. TIP: Consider going to your own bank for financing rather than using a dealership when purchasing a new vehicle.

9 Understanding how your credit score is calculated is key to increasing it. Want to learn more about your score, or gain other financial insights from the experts at Bankers Healthcare Group? Visit the BHG blog.