7 Surefire Ways to Improve Your Credit Score

Having a good credit score will help you save money over the long run. According to Bankrate, the ideal credit score is over 700. Having a high credit score can help you negotiate a lower interest rate, obtain a credit card that gives you good perks, and in general, just be able to negotiate more with creditors and lenders.

If your credit rate is currently below 620, you may not be offered credit at all, and if you are, you will receive subprime rates. Obtaining and maintaining a high credit score will help you to secure low interest rates, get cheaper home and auto insurance (those with lower credit scores may not be able to get these at all), as well as possibly save you money on deposits for utilities or phone lines. If you don’t currently have the credit score you want, here are some ways you can improve your credit score for the future.

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1. Paying bills on time

You will improve your credit score just by paying your bills on time every month. Delinquent payments can seriously harm your credit score, especially if they happen regularly. Most lenders will check your FICO score to determine if they want to give you a loan and at what rate you will get it. Thirty-five percent of the FICO score for the general population depends on your payment history, so how regularly you pay your bills will quickly affect your score. Your scores are calculated over time, so having poor credit in the past doesn’t mean you will have bad credit forever.