“𝘐 𝘸𝘪𝘭𝘭 𝘯𝘰𝘵 𝘶𝘴𝘦 𝘮𝘺 𝘤𝘳𝘦𝘥𝘪𝘵 𝘤𝘢𝘳𝘥 𝘴𝘰 𝘮𝘺 𝘤𝘳𝘦𝘥𝘪𝘵 𝘶𝘵𝘪𝘭𝘪𝘻𝘢𝘵𝘪𝘰𝘯 𝘸𝘰𝘶𝘭𝘥 𝘴𝘵𝘢𝘺 𝘭𝘰𝘸.”
Oops! That’s not how it works! Not using your credit cards does not help increase your score!The best way to help your credit score is to show you can manage debt properly. If you have 3 to 4 credit cards, use them responsibly. Make sure the balances never go above 30% of the credit limit.
Paying down the balance before the billing cycle ends or paying several times throughout the month will help keep your balance low. The biggest factor is paying on time and the second-biggest factor in your credit score is your credit utilization. As soon as your credit card reports a lower balance to the credit bureaus, that lower utilization will be used in calculating your score. Ideally, keep your credit utilization below 30%. Best to have it between 1-9% to see fast improvement!
“𝘐 𝘬𝘦𝘦𝘱 𝘧𝘰𝘳𝘨𝘦𝘵𝘵𝘪𝘯𝘨 𝘮𝘺 𝘱𝘢𝘺𝘮𝘦𝘯𝘵𝘴. 𝘚𝘰𝘮𝘦𝘵𝘪𝘮𝘦𝘴 𝘐 𝘭𝘰𝘴𝘦 𝘵𝘳𝘢𝘤𝘬!”
You can set calendar reminders so you won’t forget to make payments! You can list all your accounts in order, write the minimum payment for each, add up the total of your monthly debt, write down the extra amount of money you can apply towards your debt each month. You can also use a specialized app for organizing your money and reminding you about your bills.
“𝘐 𝘮𝘪𝘴𝘴𝘦𝘥 𝘢 𝘱𝘢𝘺𝘮𝘦𝘯𝘵 𝘢𝘯𝘥 𝘪𝘵’𝘴 𝘣𝘦𝘦𝘯 30 𝘥𝘢𝘺𝘴. 𝘐 𝘥𝘰𝘯’𝘵 𝘬𝘯𝘰𝘸 𝘸𝘩𝘢𝘵 𝘵𝘰 𝘥𝘰.”
If you miss a payment for 30 days, pay up as soon as you can. You may be charged for an interest fee and late payment fee but the account is will not yet be reported to the bureaus. However, if you are more than 30 days late, the creditor/bank/lender will report to the bureaus. In that case of missing a payment for more than 30 days, you can try asking for a good will removal. The impact of late payments fades over time and adding good standing credit accounts can help speed that up.
𝑼𝒏𝒅𝒆𝒓𝒔𝒕𝒂𝒏𝒅𝒊𝒏𝒈 𝒚𝒐𝒖𝒓 𝒄𝒓𝒆𝒅𝒊𝒕 𝒓𝒆𝒑𝒐𝒓𝒕 𝒂𝒏𝒅 𝒄𝒓𝒆𝒅𝒊𝒕 𝒔𝒄𝒐𝒓𝒆 𝒊𝒔 𝒂 𝒉𝒖𝒈𝒆 𝒑𝒂𝒓𝒕. 𝑩𝒆𝒊𝒏𝒈 𝒆𝒅𝒖𝒄𝒂𝒕𝒆𝒅 𝒂𝒔 𝒕𝒐 𝒉𝒐𝒘 𝒚𝒐𝒖𝒓 𝒄𝒓𝒆𝒅𝒊𝒕 𝒔𝒄𝒐𝒓𝒆 𝒊𝒔 𝒇𝒐𝒓𝒎𝒆𝒅 𝒆𝒏𝒂𝒃𝒍𝒆𝒔 𝒚𝒐𝒖 𝒕𝒐 𝒃𝒆 𝒃𝒆𝒕𝒕𝒆𝒓 𝒑𝒓𝒆𝒑𝒂𝒓𝒆𝒅 𝒘𝒉𝒆𝒏 𝒚𝒐𝒖 𝒂𝒓𝒆 𝒓𝒆𝒂𝒅𝒚 𝒕𝒐 𝒂𝒑𝒑𝒍𝒚 𝒇𝒐𝒓 𝒕𝒉𝒆 𝒍𝒐𝒂𝒏𝒔 𝒚𝒐𝒖 𝒏𝒆𝒆𝒅.