Many kinds of people look at your credit report, like landlords, employers, and loan officers. That’s why having poor credit could make things like renting or buying a home, getting a job, or receiving good interest rates on loans more difficult or expensive.
It can seem tricky at first to build good credit, but believe us, you can do it. Check out these tips to better understand, handle, and improve your credit.
- Always pay every bill on time, even if it’s only the minimum due.
- Keep your credit balance at or below 35% of your total limit.
- Consider using a credit monitoring service to keep a closer eye on your reports.
- Have a mix of credit types, like loans, credit cards, and installment loans. Installment loans include auto, student, and mortgage loans.
- When you apply for new credit, do so in moderation.
- Before closing an account, make sure to completely pay off its balance.
- To help with credit history length, you could keep old credit accounts open.
- Throughout the year, frequently review your credit reports to ensure they are accurate. If you notice any errors within your credit report, be sure to raise the appropriate flags to the credit bureau to have the mistakes corrected. Learn how to order and review them in "Viewing Credit Reports."
- Check out our Academy Bank Credit Builder card to see how we can help raise your credit score.