March is National Credit Education Month which means there is no better time to learn the importance of your credit score. While it’s a complex topic, there are some key concepts you should understand to establish and maintain good credit.
All About Credit
5 Tips To Improve Your credit Score
1. Pay bills on timePast performance is a predictor of future performance so pay all bills off timely – rent, utilities, loans, and credit cards.
2. Keep debt to a minimumUnderstand your credit utilization ratio which is the amount of debt you carry (total amount of credit balances) compared to your combined credit limits; lenders like to see a credit utilization ratio of less than 30%.
3. Keep up the good workThe longer you can maintain a good credit rating, the better. Accounts that have been in good standing for a long time add to your credit score.
4. Open new credit accounts only as neededApplying for credit results in a “hard inquiry” on your credit report which has a negative on your overall credit rating that can last for up to two years.
5. Check your credit reportsIf you find inaccurate information on any credit report, you can dispute the information to have it corrected.
To learn more about credit and credit education, visit https://nationaltoday.com/national-credit-education-month/