Looking for ways to improve credit scores? You’re not alone. Studies have shown that nearly 1 in 4 adults in the U.S. have what’s considered to be a poor credit score. Poor credit score typically means a credit score of 580 or below. If you’re a part of that statistic, don’t fret! True Sky Credit Union has listed five ways to improve your credit below. All it takes is a little work, financial planning, and taking responsibility for your financial habits to increase credit scores. But before we jump into our five tips on how to improve credit scores, let’s briefly talk about why having a good credit score is so important.
Having credit is part of financial power, meaning it helps you get things you need now and in the future, for example, a loan for a car or even the ability to get a credit card. It’s all based on your promise of paying back the loan later. Having good credit helps ensure that you’ll qualify for the loans you need when you need them. So without further ado, here are True Sky Credit Union’s five tips to improve your credit score.
How to Improve Credit Score
Pay your bills on time
Paying your bills on time is easier said than done for most people, but paying your bills on time makes a world of difference for your credit score. Whether or not you have a history of paying your bills on time is the main contributor to having a good credit score. Missing payment due dates could affect your credit score for years to come–not a good thing! If you’re struggling to make ends meet, consider setting up a budget, automatic payments, or setting payment reminder alerts to help prevent you from stacking up overdue bills.
Catch up on overdue bills
Piggybacking off of the above tip, catching up on your overdue bills is a must if you’re wanting to increase your credit score. Easier said than done–we get it! If you’re having trouble getting caught up on your overdue bills, you might consider contacting your lenders to see if they have a different payment plan. If you’re a True Sky Credit Union member, you should contact us directly to discuss potential options.
Understand how your credit score is determined
Understanding how your credit score is determined is a vital part of keeping good credit or increasing credit scores. When determining your credit, you should ask yourself, “do I pay my bills on time?”, “Do I have any outstanding debt?”, “How long is my credit history?”, “Have I applied for new credit recently?”. Answering these questions will help you better understand why your credit score is what it is.
Verify information on your credit reports
You can check your credit report every 12 months at www.annualcreditreport.com at no cost. As we mentioned earlier, your credit score is affected by several factors, so knowing what’s on your credit report will tell you exactly where you stand as far as your creditworthiness. If you find errors on your credit report, they could negatively affect your credit score and should be dealt with immediately.
Learn the legal steps you must take to improve your credit
After checking your credit report, if there is an error, then you must learn the legal steps you must take to improve your credit. Otherwise, the consequences of letting a few errors go could cost you your credit in the long run.
Boost Credit Score With True Sky Credit Union
If you’re starting out with no credit card in possession yet, look around at different credit cards to see which one will be best for you. If you need help with this process or any other financial needs, then True Sky Credit Union can help! We’re here to make sure your transactions are secure, as well as a secured credit card for those who are working towards rebuilding their credit. Part of how to raise your credit score is also ensuring that you are receiving fair credit. Check out our other services if you don’t need to improve your credit score! We also offer checking and savings accounts, auto, home, and personal loans, financial help resources, and more. If you’re interested in becoming a member or want to learn more about us, feel free to explore our website, give us a call, or stop by one of our many locations throughout the Oklahoma area. We look forward to assisting you to the best of our abilities.
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