Are you tired of being denied loan or credit card applications because of a low credit score? Are you looking for ways to improve your creditworthiness and financial health? Look no further than these 5 tips from credit expert, Eric Chew, that will boost your credit savvy score.
1. Monitor your credit report regularly
Your credit score is based on the information contained in your credit report. Therefore, it’s important to regularly monitor your report to ensure the information is accurate and up-to-date. You’re entitled to a free credit report from each of the three credit bureaus (Equifax, Experian, and TransUnion) once every 12 months. Reviewing your report will allow you to identify errors or fraudulent activity and address them promptly.
2. Pay your bills on time
One of the most critical factors affecting your credit score is your payment history. Late payments stay on your credit report for up to seven years from the date of the missed payment and can significantly reduce your score. To avoid this, set up automatic payments or reminders to ensure you pay your bills on time every month.
3. Keep your credit utilization low
Credit utilization refers to the amount of your available credit that you’re currently using. Experts recommend keeping your credit utilization below 30% to maintain a healthy score. If you’re using more than this, consider paying down your balances or increasing your credit limit to reduce your utilization.
4. Don’t close old credit accounts
Closing an old credit account can negatively impact your credit score because it reduces your available credit and shortens your credit history. Instead, consider keeping old accounts open and active by using them occasionally and paying off the balances.
5. Limit new credit applications
Every time you apply for credit, it triggers a hard inquiry on your credit report, which can lower your score. Limiting your applications and only applying for credit when necessary can help prevent unnecessary inquiries.
By following these 5 tips from Eric Chew, you can boost your credit savvy score and improve your financial well-being. Remember, improving your credit score takes time and effort, but the rewards are worth it. Start taking steps today to see the difference it can make!
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