Leveling Your Credit Score Game.

Here are the 3 ways to level up and maintain your credit score. 

So, you wanna get your credit score up, well who doesn't. Increasing your credit score doesn’t just give you bragging rights but with a higher score you can attain lower interest rates on car loans, credit cards, and mortgage loans. You heard that right, lower interest rates on car loans, say goodbye to that 30% APR Hellcat. Your credit score is the key to unlocking your financial opportunities. So, let’s explore the 3 strategies in detail.

#3: Payment History

PAY YOUR BILLS ON TIME. A very simple task with high yielding results. Late or missed payments on your credit cards or loans can negatively impact your credit score significantly. Even just paying the minimum payment can help alleviate the massive drawback that not paying your bill has on your credit score. In short don't miss payments and at the least pay the minimum payment on your loans and credit cards. 

#2: Reduce Credit Card Balance

The amount of credit you’re using compared to your available credit is known as your credit utilization. The common practice is to keep your credit utilization under 30%. So, if your credit card limit is $10,000 you want to only use $3000 a month on that specific card to keep your credit utilization at 30%. Credit utilization plays an important role in keeping your credit score up or down. This is easy to do when you’re an E1-E4 in the dorms, so start as early as you can to get those scores up.

#1 Diversify Credit 

This may sound counterintuitive but having a mix of different credit lines actually demonstrates to the lender that you are credit responsible. A mix of different credit lines may include credit cards, car loans, and mortgage loans. If you don't have a diverse credit line then consider opening new credit accounts over time. Just be careful when opening new credit accounts as this will create a hard inquiry and lower your credit score temporarily. So, go out there and diversify your credit.

These three strategies can help you maintain and increase your credit score overtime. Improving your credit score takes some financial awareness and diligence so, be proactive and pay your payments on time, don't over utilize your credit card, and diversify your credit line if you have the means!