5 Ways to Potentially Raise Your Credit Score

Lenders use the FICO score when deciding whether or not to approve you for a loan or new line of credit. There are many factors that affect your credit score. 
​These include:

1. Payment History (35%)
2. Amounts Owed (30%)
3. Length of Credit History (15%)
4. New Credit (10%)
5. Credit Mix (10%)

The best way to build your credit is to start early. Before you are 18 years old, you can open a credit card with your parents under their account. Then when you are 18 years old, you are eligible to open your own checking, savings, and credit card accounts. Starting early will build your credit history. 
When you have a low credit score from owning too much debt or from other factors hurting your credit, it is hard for you to apply for loans or become creditworthy.  Here are tips on how you can raise your credit score:

• Reduce your credit utlilization 
  • Pay off your credit card balances.
  • Calculate your credit utilization for all of your credit cards and focus on paying down the card with highest utilization percentage.
  • Ask your credit card issuers for higher credit limits.
• Keep old credit cards open
• Let your credit accounts age
• Wait for negative information to drop off 
  • Late payments, collections, and charge-offs need to be removed or will be removed over time.
• Use your credit 
  • Have an active mortgage, auto loan, and credit card.

Your credit score is an important indicator of your creditworthiness and it is used frequently throughout your life. It is always important to keep your credit score high, but if there are any detours in your climb to the top, now you are equipped with the tips to help you around those.