Did you know that having a higher credit score can open the door to more financial opportunities, such as access to certain types of mortgage loans, a lower interest rate, a new credit card, or auto loan? Although Academy and its employees don’t provide credit repair services, here are three basic steps that are helpful information for any consumer:
Fix mistakes in your credit report. Pull your credit report and look for errors. Identity errors, like listing another Jane Smith's account on your report, are among the most common. Others include accounts listed as open when they've been closed and accounts with the wrong credit limit after it's been increased. Report mistakes like these right away. Then double-check that the mistake was fixed. According to the Consumer Financial Protection Bureau, reported mistakes that are reinserted in your report are another common problem.
Never miss a payment. Payment history—including whether payments are made on time and in the correct amount—is the most important factor in your credit score. Create a plan to help you get on track with timely bill payments. For example, you can set up auto-pay through your bank or create calendar events in your phone to remind you to pay your bill before it's due.
Decrease your credit utilization rate. As a general rule, aim for a credit utilization rate of no more than about 30% of the maximum spending limit on your credit card. While 30% utilization of your maximum isn’t a hard-and-fast rule, it will be likely help raise your score.
Want to learn about our partners who offer FREE credit counseling and help with improving YOUR score? Call us now at (480) 518-9907 and we can get you connected today and on the path to home ownership.
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