As you learn more about managing your credit, you realize how much depends on the health of your credit score. Whether your goal is to rebuild a lower score or simply to maintain a higher score, introducing a few good habits into your everyday financial routine can boost your credit and keep it in good standing. Consider these seven helpful strategies:
1. Regularly check your credit score
You can find your credit score on the mobile apps of most financial institutions and credit card companies. Keep in mind that these scores are not listed in real time, so any progress made to improve your credit score may not be reflected yet.
2. Review your credit report
Your credit report provides and outlook on the state of your credit. View your report annually at no cost through each of the three credit bureaus at annualcreditreport.com.
3. Don’t sleep on disputes
Submitting a dispute is an opportunity to appeal, and hopefully correct, faulty information. If you find inaccurate details or transactions in your credit report—like accounts that you don’t recognize or should be closed—follow the steps to make a dispute.
4. Prioritize credit education
Access to financial education on credit and many other topics is widely available. Commit to regularly reviewing resources to stay up to date on how to keep your credit in good shape.
5. Eliminate debt
A large contributing factor on your credit score is the amount of debt you carry. Your debt load is an important component in determining your creditworthiness. If you have significant debt, consider meeting with a financial guide to create a payoff plan that works for you.
6. Stay consistent with your payments
Consistently paying credit card and other loan payments on time is imperative to secure a strong credit score. To avoid unnecessary late fees, set up automatic payments for the minimum monthly amount. You can always pay more in a separate payment if you want.
7. Practice patience and persistence
Improving your credit score is not something that happens overnight. Damaging behavior, such as missing or late payments, could remain on your credit report for 7–10 years. While repairing your credit will take time, it’s important to maintain healthy credit habits so your score will continually become stronger.