Tips to Improve Credit Scores

Let’s talk credit scores. Did you know your credit score is tied to so many things? –Mortgages, car loans, apartment rentals, interest rates, cell phone plans, car insurance rates, applying for student loans, utility accounts, and much more.

Growing up, I was always taught to pay for things with cash or not live beyond my means. This was great, until I realized you need to first establish credit…but GOOD credit. I opened a credit card through my bank and would pay off the monthly balance, not just the minimum payments. Habits like these helped establish a good path as I moved forward with leasing my first vehicle, and eventually getting approved for a mortgage on a house.

But what happens if you need to raise your credit score once you’ve started establishing it? You may be paying your bills on time, not opening up revolving credit at every store that asks you to sign up for a store card, etc. but you still want a higher score.

Or maybe you hit a bump in the road and couldn’t make a payment on time and you ended up with a late payment on your record. Maybe you didn’t pay a medical bill. These can have negative impacts on your score. Although not ideal, there are ways to improve that score. So do not worry!

Here are some quick tips to get that credit score to spike a bit over time:

  1. Only utilize 10% of your credit limit.
  2. Check with the credit card company to find out which days they report to the bureau. Pay off your balance before the reporting day so it doesn’t look like you are utilizing all the credit you’ve been given.
  3. Pay your bills on time.
  4. Don’t allow companies to constantly pull your credit.

If you have any further questions, let us know and Team Hamilton would love to put you in touch with one of our trusted local lenders. Whether you are interested in purchasing a home now, in the future, or just looking for some advice to repair credit, they would be happy to help.