In today’s post, great recession economy, it’s become more important than ever to ensure your credit score is as strong as possible. Lenders are no longer taking a cursory glance at your credit report. Everyone from mortgage and auto lenders, credit card companies, and even potential employers are conducting thorough examinations of your credit worthiness. So, take action now to boost your score.
Establish Your Credit
While it may sound counter-intuitive, you’ll want to ensure you have a couple credit cards, an auto loan, or utility bills in your name. Make certain you pay these bills on time each month. This will show potential lenders you are able to make your payments each month.
This doesn’t mean you should run out and apply for 10 credit cards that you’ll never use. That will likely lower your credit score. Instead, start early and in advance of needing to take out a large loan and gradually build up your credit.
Check Your Credit Score
You should review your credit report on an annual basis. This will guarantee the information on your report is accurate and up to date. Checking your credit on a regular basis will also alert you to any fraudulent behavior that’s occurred. You’ll want to get any errors resolved immediately before it becomes too late.
Pay Your Bills on Time
This last step is not only the most obvious, but also the most important. The greatest method for improving your credit score is simply to pay your bills on time each month. This includes your mortgage, auto loan, credit cards, utilities, etc. Although you don’t have to pay off your credit card each month (though, you should), make sure you at least make the minimum payments and work to keep your balances low. The natural process of making payments consistently will improve your score.