Today is #CHA720, the city-wide campaign to raise credit scores. In celebration, we've compiled 5 easy tips on raising your credit score!
1. Have student loans? Put them on automatic payment.
By doing so, you will not be late on your next payment and it will limit you on what you will spend per month.
Budgeting your loans alongside what you already owe will help you learn how to save money straightforwardly. Use this budget from Consumer Finance Protection Bureau for help (download will start automatically)!
2. Beware of collection accounts.
If you have past due accounts, get yourself current on them, and stay current. However, according to myFico, collection accounts stay on your report for seven years, even after the debt is repaid. Don't let this deter you. It's important to pay off debt.
3. Keep up with your credit card balance.
Balance your revolving credit and the amount you're using. According to BankRate, the golden percentage is 30% or lower. The smaller the percentage it is, the better your credit score will be.
It is best to keep your balances low and pay them off on time.
4. Be wary of big purchases.
Planning to buy a car or a home? Check your credit months in advance and plan out your spending. Don’t focus too much on the present, but rather gain a habit of smarter spending and it will reward you in the future. That way, buying your future car or home won’t be such a hassle.
5. But most of all, talk with a credit counselor
Each account is unique. You may need special guidance that a HUD-certified credit counselor can provide for you. Ensure that whoever you receive guidance from has the HUD certification. Meeting with a counselor will not hurt your credit score - it will improve it! CNE offers this counseling, along with Consumer Credit Counseling Service (CCCS) and Operation HOPE. Seek out help!