By Amy Miller, AFC®

5 Simple Steps to Improve Your Credit Score

Your credit score plays a big role in your financial life. But what if you’ve had a few bumps in the road and your credit score isn’t an A+? You don’t have to do everything perfectly to see improvement. Small, intentional steps can add up over time.

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Credit Score

Your credit score plays a big role in your financial life. From qualifying for a rental to getting a car loan or mortgage, lenders and businesses use your score to understand how you manage money.

But what if you’ve had a few bumps in the road and your credit score isn’t an A+?   

The good news? You don’t have to do everything perfectly to see improvement. Small, intentional steps can add up over time. Here are five simple ways to start improving your credit score today:

1. Pay on Time, Every Time

Your payment history is the largest contributing factor that makes up your credit score. Even one missed payment can have an impact. Setting up reminders or using automatic payments can help you stay consistent and stress less.

2. Keep Balances Manageable

Using some of your available credit is normal, but carrying high balances month to month can weigh down your score. A good rule of thumb is to aim to use less than 30% of your available credit limit, and lower if possible.

3. Build a Savings Cushion

Surprised to see savings on this list? Having even a small emergency fund can keep you from leaning on credit cards when unexpected expenses pop up. Saving and credit go hand in hand when it comes to creating stability.

4. Check Your Credit Report Regularly

Mistakes happen. Reviewing your credit report regularly helps you catch errors and spot signs of fraud early. You can request your free reports as often as weekly at AnnualCreditReport.com.

We recommend at least quarterly.  Set calendar reminders so you don’t forget!

5. Be Patient and Consistent

Improving your credit score takes time. Don’t be discouraged if you don’t see changes right away. Focus on steady progress, every on-time payment and every dollar you save brings you closer to your goals.

Improving your credit score isn’t about being perfect. It’s about being intentional and consistent with your habits. By combining thoughtful credit use with regular saving, you’re setting yourself up for a stronger financial foundation…….one step at a time.

 

Ready to take the next step? Make your commitment today by taking the America Saves Pledge. It’s a simple way to put your goals into action and stay motivated as you build credit and grow your savings, one intentional step at a time.

 

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