Here are five tips for improving your credit score.
1. Keep the oldies aroundCredit history has a big impact on your credit score. The longer your credit history, the better your score should be, so while you might think to close that old credit card you’ve had since college, don’t.
2. Don't close accountsYou might be tempted to close that account you struggled with and finally managed to pay off, but think twice before you do. Credit scores are calculated on a number of factors, one being your available credit to debt ratio. Closing that zero balance account will through that ratio into whack.
3. Keep low balancesAs we mention in the point above, keeping a healthy credit to debt ratio is crucial in having a good credit score (experts recommend keeping a 30% ratio). Paying down balances will help you improve your ratio and therefore your score.
4. Better late than neverThe more punctual you are with your payments, the higher your score will be, but missing a payment happens even to the best of us. If you miss a payment, pay it as soon as possible. Late payments under 30 days are typically not reported to credit agencies. Don’t wait until the next cycle to make the payment.
5. Keep an eye on your reportConstantly monitoring your credit report can help you spot errors that can save your credit score. It could be something big like a fraudulent loan obtained through identity theft, or it could be a mismatch of your name or address. Any error, no matter how big or small, should be reported in writing to the credit bureaus.