According to the FICO credit scoring system, any score under 580 is considered poor credit. Without a good understanding of what factors affect your credit score, it can be difficult to properly monitor and manage your credit score. Luckily, 1st Choice Money Center is happy to serve as a resource to those with low credit who are looking to improve. From bill payments to credit utilization to personal loans in Utah, here are three ways you can boost your credit score.
Pay Your Bills on Time
This one might seem obvious — of course you should be paying your bills on time. But what a lot of people don’t know is that payment history is one of the biggest factors affecting consumer credit scores. If you’re looking to raise your credit score quickly, this should be your priority.
If you’ve already missed one or more credit card payments, you shouldn’t give up. Paying off your outstanding credit card bills is a good place to start. Each month that your bills are left unpaid lowers your credit score.
If you missed a bill payment by 30 days or more, call your creditor. Be prepared to pay the late bill so you can reasonably ask them to not report the missed payment to credit bureaus. They might say no, but it’s worth a shot.
Once you have your payments under control, set up autopay with your bank so you don’t miss any more payments.
Have a Curated Mix of Loans and Credit Cards
Creditors like to see that you can balance a combination of loans and credit cards. If you’re primarily using credit cards, taking out a loan can be a good way to build your score because it shows lenders that you are willing and able to make payments on time.
However, you don’t want to take out just any loan, and you don’t want to take out a loan for solely the reason of building your credit score — doing so can make you look like a risky borrower. Start with a small, short-term, personal loan in Utah. You might use this loan for debt consolidation or to pay off an outstanding balance with a high interest fee. If you pay off your personal loan in Utah on time, this will not only make you look like a reliable borrower, but it will also stop those old outstanding payments from further lowering your score. 1st Choice Money Center offers bad credit personal loans to Utah consumers who may be struggling financially, as well as title loans in Utah.
Stay Under 30% of Your Credit Limit
When you go over 30% of your credit limit, this lowers your credit score. You can keep your credit utilization low by limiting how much you charge to your credit cards, or making payments twice a month rather than monthly. This will keep your balance low, which is good for your credit score. You can also talk to your creditor about potentially raising your credit limit.
1st Choice Money Center is here to help you get back on your feet. Apply today and receive up to $5,000.