Your credit score has a lot to do with the interest rate you will pay any time you borrow money—and sometimes, beyond.
In my experience, for people new to managing their finances, credit is the most difficult element to master. It is not something physical you can hold in your hand, and it is often left unmonitored until you need it—and, by then, it may need some attention before it can help you.
Use these eight helpful strategies to keep your credit ready when you are:
- Check your credit score regularly
Most financial institutions and credit card companies make your credit score accessible inside their mobile app. One thing to keep in mind, these scores are not listed in real time so, if you are taking steps to improve your score, it may take a little while before you see a change reflected here. - Review your credit report
Monitoring your report gives you the opportunity to correct inaccurate information that may negatively impact your credit score. - Don’t sleep on disputes
If you find flawed information in your credit report, consider filing a dispute. This is an opportunity to appeal, and hopefully correct, faulty information. - Prioritize credit education
Most credit unions and banks offer access to educational resources ranging from articles, podcasts and videos to appointments with a financial expert. - Eliminate debt
If you have significant debt, work on developing a debt payoff plan. Consider meeting with a financial guide to help create a plan that works for you. - Stay consistent with your payments
Set up automatic payments for the minimum monthly amount to ensure you pay on time. That way, you won’t forget or incur unnecessary late fees. - Reconsider how you use your credit cards
Consistent usage of credit cards is helpful for raising your credit score—even if it is just once a year. If you have credit cards you don’t use regularly, consider setting up a recurring online payment on each one. Or use it just for one type of item, like gas or travel. Practice patience and persistence
Improving your credit score will not happen overnight. Missing or late payments can remain on a credit report for 7 to 10 years. While repairing your credit will take time, when you maintain healthy credit habits, your score will continue to improve.