Our credit scores are one of the most critical aspects of our financial lives.

When it comes time to take out a loan or a mortgage, and sometimes even securing employment, your credit score is used to evaluate an individual’s risk of defaulting on payments.

Your score reflects your history of managing debt. If it is too low, you may not be approved for a loan or mortgage or be offered less favorable terms than someone with a higher score.

You might think, “Oh, so if I don’t have any credit products, my score must be great!” but not having a credit history can be just as bad as having a low score, so it is essential to keep track of your finances and establish a good credit rating when possible.

You can boost a low score in many ways, but it will take time to establish your credit trustworthiness.

Monitor Your Credit Report: Make sure that any information on your report is accurate and up-to-date. If there are any discrepancies, dispute them as soon as possible.

Pay Your Bills On Time: Late payments hurt your credit score, so make sure you pay all of your bills on time each month. Setting up automatic reminders or signing up for paperless billing can be helpful in this area.

Reduce Debt: High debt levels can significantly lower your credit score, so try to reduce it whenever possible by paying down the balance on existing accounts or transferring balances to a low-percentage interest rate card if possible.

Keep Accounts Open: Closing old accounts can negatively impact your credit score, so resist the urge to close any open lines of credit unless necessary.

Limit New Credit Applications: Opening new accounts too frequently can signal instability and cause a temporary dip in your credit score, so avoid applying for any new lines of credit without considering the potential consequences first.

Building and rebuilding credit, while time-consuming, is worth the effort, and future you will thank current you for keeping it under control when you apply for that loan down the road.

That’s the future-proofing we like to see.

Want some help with raising your credit score? That’s what we’re good at. Call 330 836 7800 Ext .1 or book an appointment online here to talk with us about your financial situation and how we can help you.