Activities that Positively Affect Your Credit Score

Let’s cut through all the clutter and chatter. Here are five great general financial activities you can use to build your credit:

  1. Get your accounts current. If you have missed a payment or are late, get caught back up.
  2. Make at least the minimum payment on every account every month.
  3. Pay down your debts as much as possible. This includes credit cards, home loans, car loans, student loans, and even collections.
  4. Keep old accounts open and, ideally, at zero balance. Closing old accounts will likely hurt your utilization rate which lowers your credit score.
  5. Whenever you make an in-store purchase with a store card, pay off the balance before leaving the building. You may do so at the customer service desk or, in some cases, at the cashier stand. Consequently, you will have made and paid for a purchase and have a zero balance on the account, all of which contribute to positive credit ratings.

Want to know six specific steps you can take to rebuild bad credit? Let’s look at these in the next lesson.

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