Improving Credit For a Lower Rate

Improving credit for a lower rate

Applying for a mortgage is no small task. Learn how to make the best use of your time by making an informed decision about choosing a mortgage option.

CREDIT HEALTH QUIZ

How s your credit
health?

How healthy is your credit? Take our quiz to find out more about how well you re managing your credit.

CREDIT HEALTH ARTICLES

Breaking Down Economies All activity that relates to the trade, production, and consumption of services and goods is encompassed by an economy within a specified area. Through a combination of hierarchical or collective decisions and

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Breaking Down Economies All activity that relates to the trade, production, and consumption of services and goods is encompassed by an economy within a specified area. Through a combination of hierarchical or collective decisions and

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Breaking Down Economies All activity that relates to the trade, production, and consumption of services and goods is encompassed by an economy within a specified area. Through a combination of hierarchical or collective decisions and

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Top 5 Ways to Improve Your Credit Score, Today

There are three areas of your credit report that impact your score the most (negatively or positively): 

Debt
to income
ratio

On-time
or late
payments

Age of
oldest credit
account

There’s a number of ways you can improve your credit score in the short-term and in the long-term. Time is the most passive healer of your credit health so as time goes on (as long as you’ve practiced healthy credit habits) you will notice your score improve with little effort. Meanwhile, here are ten ways to improve your credit health today or in the near future:

1

Make more money.

The fastest way to improve the debt to income ratio is to simply increase your income. You can update your income with credit reporting agencies and this will help lower your debt-to-income ratio and improve your overall score.
2

Pay more than your minimum payment per month.

Got some spare cash? Make above the minimum credit or debt payment you’re asked per month. Even a few dollars looks good to creditors, so don’t be shy about how little or how much you pay more per month.
3

Get your debt-to-credit ratio down to 28% (or less).

You can do this either by 1) Paying down your overall debt to 28% or less or 2) Paying down as many credit cards as you can to 28%. Either way is fine, but some financial gurus recommend one option over another.
4

Partner up with someone you trust.

Sometimes a low credit score is less about poor credit habits and more about a lack of a credit history (length and number of accounts). Get a credit card through a family member, such as a parent or a spouse, by having them add you as an account holder/user. But make sure that your trusted partner has a good credit score – otherwise linking up with them will do more harm than good to your credit score.
5

Make payments early.

Set your budget up so you can make monthly credit card or debt payments early. This will provide a safety net in case a payment change (automated payment, etc.) occurred unbeknownst to you and you’ll have some cushion to make the payment without it being reported to credit bureaus.

These are just a few of the avenues you can take to help improve your credit score. Check out our more comprehensive guide to credit below.

Gain an even fuller understanding of your credit score and health with our Comprehensive Credit Guide

GO TO THE COMPLETE GUIDE