1. Pay bills on time
Past performance is a predictor of future performance so pay all bills off timely – rent, utilities, loans, and credit cards.
2. Keep debt to a minimum
Understand your credit utilization ratio which is the amount of debt you carry (total amount of credit balances) compared to your combined credit limits; lenders like to see a credit utilization ratio of less than 30%.
3. Keep up the good work
The longer you can maintain a good credit rating, the better. Accounts that have been in good standing for a long time add to your credit score.
4. Open new credit accounts only as needed
Applying for credit results in a “hard inquiry” on your credit report which has a negative on your overall credit rating that can last for up to two years.
5. Check your credit reports
If you find inaccurate information on any credit report, you can dispute the information to have it corrected.
MSCU's Financial Independence Training Program (FIT), eases the stress when it comes to your personal finances so you can confidently navigate your journey. Discover our FIT Program to personalize your credit journey with one-on-one coaching, articles, videos and more.