While using a plain green loans may be a way to get extra money, but not ideal when you’re looking at your whole financial picture, and maybe the amount of money you’re paying each month has to do with your credit score. The higher the credit score you have, the better the interest rates on the market you can take advantage of, so when it comes to your mortgage, auto loan, credit cards, even insurance, you could actually free up plenty of extra money each month by boosting your credit score.
Check Your Credit Report
These days you just never know who you steal your information. Whether you swipe your card at the gas pump, leave it out for too long when paying a bar tab, even stores and credit bureaus are getting hit, so while some may be out of your control, it’s a good idea to at least pull your credit report at least once a year to ensure all accounts are up to date and accurate. Beyond that, you can review your monthly credit card statements that will have your credit score on there to make sure you continue to trend in the right direction, trying for the best possible score.
Always Make On-Time Payments
A large portion of your credit score is made up of your payment history, so it’s important to pay on or before the due date so you can at least keep your account current. While you will not get reported to the credit bureaus if you are a day late, as it’s only when it becomes thirty days late, you can get hit with a late fee and possibly an APR increase by missing your due date, so when it comes to items reported on your credit report, paying on-time should be taken seriously.
Keep Credit Utilization Low
Almost as important as payment history is how you use your available credit. Your score will decrease as you continue to charge up your account without paying off. Not only is charging what you can afford to pay off by the statement due date important to not only limit any credit card interest you could be paying, it will eliminate any risk of going into serious debt if you continue to increase the balance on your account and approach the credit limit. By continuing to pay off every month you could get rewarded with credit line increases.
Each time you get your credit pulled by filling out a credit application it can lower your score, not by a lot, but enough applications submitted and not only will your score go down, but it could give lenders the impression that you are going on a charging spree by opening too many new lines. Just be sure that you are serious about the inquiry if you are having credit pulled, such as going through a refinance that will save you money or opening a rewards credit card that will earn you free money by making the purchases you were going to make anyways.