Tips for Improving Your Credit Score

December 20, 2021

While not a measure of your overall financial health, a high credit score can lead to lower interest rates on mortgage and car loans. FICO scores below a certain level can disqualify you from conventional, low, fixed rate mortgage programs.


Pay on Time

One of the most significant factors that can determine your credit score is your payment history. Having a good record of on-time payments can help boost your credit score while paying late can pull your credit score down. A good way to ensure your remittance is on time is to set up automatic payments for the minimum due every month.


Pay More Than the Minimum Every Month

If you can afford it, paying more than the minimum amount every billing cycle can go a long way in improving your credit score. Or better yet, pay your balance in full every month to avoid paying financing charges.


Increase Your Revolving Credit Limits

Only do this if you have the discipline to not utilize these higher limits.    If you max out the cards after increasing the limits, you have taken a big step backwards. Having a higher limit lowers your credit utilization rate which is a way to “trick” the credit scoring model into a higher score


Get a Free Credit Report Once a Year.

You and do this each year at:  Check this report for accuracy.  If there are discrepancies, contact the credit to verify their data is correct.


Don’t Close Older Zero Balance Revolving Accounts

Having older accounts open will help your score.  Lenders usually prefer clients who have a long history of accounts. So even if you don’t use your old accounts much, keep them open so that your credit history shows that you’ve already had these accounts for a long time.


Improve Your Credit Score with Our Help

If you’re looking for help with your credit score, loans, or just your general financial situation, please don’t hesitate to approach us at Firefighters Credit Union in Wisconsin. Call us today at 608-784-9480 and let us know what we can help you with. We’re looking forward to working with you!

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