1. PAY YOUR BILLS ON TIME OR EARLY

This is a no brainer but a lot of us can get caught up and just simply forget. Set a reminder on your phone or set up automatic bill pay. Don’t let something so simple cause your score to decrease.

 

2. GET A SECURE CREDIT CARD

If you have a poor score or lower than desired score, get a secure credit card. A secure credit card uses a deposit you pay as your credit balance. Be sure to keep the balance 30% or lower than the credit amount. For example, if you deposit $300 don’t spend no more than $90 on the card. This is called credit utilization and if it is above 30%, it can cause your credit score to decrease. Creditors like to see you have plenty of credit available and that you are responsible and not nearly using the credit you have available to you. After time passes, the secured credit card reports your on time/early payments to all 3 credit bureaus which will increase your score. Be sure to get one that doesn’t check your credit, as it will be a high inquiry on your credit report for any other type which may decrease your score.

 

3. AVOID APPLYING FOR DIFFERENT CREDIT ACCOUNTS IN A SHORT TIME PERIOD

If you are looking to apply for a regular credit card (unsecured credit card) or a loan or any other type of financing, be sure to be sparing with it. Don’t apply for a lot in a short time frame as this will look bad to creditors when they pull your credit report. It shows you are desperate for credit which isn’t a good sign. Be strategic with it and apply for blue moon. Space it out. Do it once every 6 months.