Your credit score is a 3-digit number that plays a big role in your financial life. We all know that when it comes to larger purchases, like a house or a vehicle, you need to have a good credit score. If you are stuck in a rut or simply want to raise your credit score by a few points, read these five simple steps for improving your score.


Pay your bills on time! When it comes to loans, lenders will look at how likely you will be to pay on time. If you are paying your bills in a timely manner, this will increase your credit score and gain trust.


Unused Credit Cards

Keeping the line open for a paid-off unused credit card (as long as it isn’t costing you anything) is a smart strategy. Creditors typically look at how many lines of credit you have open and the amount you owe on each one.


Pay Off Credit Card Debt

If you have a plethora of credit cards racking up, it’s time to cut them in half. Credit cards can be a blessing, but also your biggest nightmare if you aren’t careful.


I was once told that if you don’t have cash money for something, then you shouldn’t buy it on a credit card. Now some lines may be blurred because credit cards can be a lifesaver in case of a true emergency. This is the part where having common sense comes into play.


For a bad example: Johnny, who has been living paycheck to paycheck to make ends meet sees all of his friends purchasing new motorcycles. Johnny doesn’t want to feel left out so he maxes out his credit card (or multiple) to purchase a new motorcycle that he cannot afford to have.


For a good example: Johnny has one credit card in case of an emergency. He is driving to work on the freeway and his tire blows out. At that point, fixing the tire is necessary because he needs a way to get to work every day. Johnny will pay his debt off with every paycheck and not let it accumulate.


Inaccuracies on Your Credit Report

You should keep a close eye on your credit report for any inaccuracies. If there is any false information on your credit score that could be dragging it down, then you’ll want to be aware of this. If you do see any errors, it is important to dispute it and correct it right away.


Avoid Hard Inquiries

A hard inquiry can be harmful to your credit health because it is a red flag and it can be an indicator of uncertainty.


This is especially true if several inquiries are made in a short amount of time. Creditors start to question why there are so many new lines of credit. One single hard pull can stay on your credit score for up to two years.


A hard pull can knock anywhere from 5 to 10 to 30 points off of your score, which can be the determining factor from fair credit to poor credit.


No matter the position you may be in we can promise you that you are not alone! We offer a free evaluation of your debt and provide financial education and resources to help you get back on track. Call us today at (702) 485-3539 or fill out this form to schedule an appointment!