Are you looking to boost your credit score? You do need a credit score. Even if you choose to not use a credit card – having a good credit score is vital in 2023. Bad credit or no credit means paying a higher rate for auto insurance, being rejected for an apartment and even paying more for a cellphone plan.
Here are five ways to boost your score.
No! Checking your own credit report will not impact your score. But it will help you rule out things that are negatively impacting it. Make sure there are no errors or inaccuracies on your credit report. If you do find any errors, dispute them with the credit bureaus to have them corrected.
Payment history is one of the biggest factors that affects your credit score. Payment history makes of 35% of your overall score. Make sure to pay all of your bills on time, including credit card bills, loans, and utility bills.
Keep your credit card balances low and try to use no more than 30% of your available credit. High credit utilization can hurt your credit score.
Every time you apply for credit, it generates a hard inquiry on your credit report, which can lower your score.
Try to limit new credit applications and only apply for credit when you really need it.
The length of your credit history is another factor that affects your score. Keep your oldest credit accounts open, even if you’re not using them, to maintain a longer credit history.