6 Things You Can Do To Help Your Credit Score Today

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Getting and keeping a high credit score will help you achieve financial wellness, but it can be tough. Here are some ways you can start boosting your score today.

  1. Pay your bills on time. Your payment history has the greatest impact on your score. Missed payments can cause a significant drop in your score, and it can take several months to recover from the loss. Set a reminder for a few days before your bill is due to ensure you never miss a payment.
  1. Reduce your credit utilization ratio. When you use more than 30% of your available credit, it can negatively affect your credit score. It’s best to keep your utilization under 10% if possible. You can also request an increase in your limit or accept an offer to open a new line of credit, which can instantly bring down your ratio.
  1. Use your cards. To keep your credit score high, you need to use your credit card every once in a while. A great way to ensure that you don’t overspend is to charge fixed expenses, like monthly subscriptions, on your card. Just be sure to pay the balance in full before the bill is due.
  1. Work to pay down outstanding debt. To pay down your credit card bill, trim an expense category in your budget and redirect the extra money to your credit card balance. You should also call your credit card company and ask for a lower interest rate. Finally, consider consolidating credit card debt with a personal loan from Element.
  1. Look for errors on your bill and credit history. Fraudulent charges can lower your credit score, but it’s easy to keep an eye on your credit report. As long as you’re checking your statements each month, you’ll be able to spot a problem early on and dispute it before it does any damage to your credit.
  1. Become an authorized user on another cardholder’s account. You can quickly improve your credit standing by becoming an authorized user on a cardholder’s account. Work with someone who has excellent credit and never misses a payment; this person’s good standing will reflect well on you.

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