Simple Ways to Boost Your Credit Score | Cleveland Bradley County Teachers Federal Credit Union

There are many reasons why having a good credit score is beneficial, including easier approval for rentals and increased negotiating power with interest rates. While your credit score won’t jump a significant amount overnight, there are many ways you can improve your score over time.

These are our best tips for boosting your credit score!

Pay on Time

Missing credit card or loan payments is one of the biggest factors that can negatively impact your credit score. Depending on the creditor, you may also be charged late fees.

It may seem obvious that you are supposed to pay your bills on time, but it is easy for people to forget. If it’s a challenge to remember to pay your bill on time, automatic payments are an option.

Keep Credit Utilization Low

Financial experts recommend keeping your credit utilization ratio under 30%. This means that your credit card balance should always be less than 30% of your available credit.

Determine how much you can charge to your credit card to keep it under the recommended utilization ratio to improve your credit score.

Conversely, it isn’t ideal to have zero credit utilization. Credit card companies want to see that you can manage credit lines effectively, and not charging anything to your credit card doesn’t show that. The key is to be smart with your credit purchases, not exceed 30% utilization ratio and pay your bills on time every month.

Build Credit History

Your credit history is built over time. Creditors want to see how you manage your money.

The longer your credit history, the more beneficial it will be to your credit score. A short credit history will have a negative impact on your credit score, but there is always a chance to build it up over time.

Getting a credit card is a good step toward building and improving your credit score. Once you receive your new credit card, it is important to use it wisely!

A poor credit score can have a negative impact on your financial future, including the ability to get loans and what kind of interest rates you’re eligible for.

To learn more about our credit card options and other financial services for school employees, contact us today!