How to Improve Your Credit Score

Your credit store is vitally important for a wide range of daily activities. Not only is it a reflection of your financial health but it also can earn you better loan rates, approval for mortgages and rentals, lower insurance premiums, and offer you financial opportunities with credit cards that you may not otherwise have. Yet millions of Americans have a credit score that is less than ideal. The good news is that you can improve your credit score with the right strategies and professional guidance. Watkins & Company is your reliable accounting firm in Jackson, Mississippi. We can help you learn strategies to improve your credit score and provide more financial options for yourself.

Ways to Increase Your Credit Score Quickly

Your credit score does matter and the aspects of your life it affects are loan approvals and interest rates, credit card limits and terms, mortgage eligibility, rental applications, job opportunities in specific industries. It’s important to maintain a good credit score and secure your long-term financial stability. If life’s twists and turns have taken you to a place where your credit score is less than perfect, there are ways to improve your credit score. 

The steps to improve your credit score include:

• Check your credit report regularly: You need to consistently review your credit report for mistakes or outdated information. These factors may seem inconsequential but correcting mistakes can give your credit score an instant increase. 
• Pay bills on time: Payment history of credit cards and other bills account for roughly 35% of your credit score. Set reminders or create automated payments to avoid missing any due dates. The fastest and most effective way to increase your credit score is to pay your bills in full and in a timely manner. 
• Reduce outstanding debt and keep your credit cards to a minimum: Credit is also based on the amount of credit used versus your ratio of available credit. This means that if you have a credit card with $10,000 available, you should only use about 30% of that amount, which is $3,000. Maintaining a lower credit ratio enables you to pay it off faster and builds your credit score quickly.
• Maintain a responsible borrowing track record: The length of your credit history matters, accounting for about 15% of your credit score. If you have an older credit card that you are no longer using, don’t close it. Instead, maintain it and put a few small purchases that you can pay off immediately on that credit card. This can benefit your credit score greatly.
• Diversify credit: It can be helpful to have a wide range of credit. That means having different types of credit such as a mortgage, car loan, credit card, and so forth. However, this is only effective if you can pay and maintain a positive track record with these various credits. 
• Limit new credit applications: Every time you apply for anything that runs a check on your credit, your credit score is lowered by roughly 10 points. Avoid opening too many accounts in a short period of time or having your credit checked regularly. 

Best Accountant Jackson, MS

For reliable and knowledgeable credit advice and guidance, contact Watkins & Co today. Our skilled accounting team in Jackson, MS is standing by, ready to assist you in improving your credit score and opening up opportunities for your financial future.