5 Tips to Build your credit
Here at NBCS, we don’t just help repair your credit we also are committed to educating people on all things credit. One of the most important things when tackling your credit score is building your credit score up and developing a credit history. Here are 5 tips to start building up your credit score!
- Monitor your credit score for free
- The first step to building up your credit is to start monitoring it. You can open free accounts with Experian or Credit Karma to begin checking your score at the three major bureaus (Experian, Transunion, and Equifax). Remember that these scores aren’t always 100% accurate. But it’s a good place to start monitoring your score for free. You can also get a full credit report once a year from Annual Credit Report.
- Learn what impacts your score the most
- Credit is made up of multiple factors. The most important factors are Payment History, Amounts Owed, and Length of Credit history. Learning how these factors impact your score is important to building up your credit. And is one of the first steps to creating a plan to build your credit up. Luckily you don’t have to approach this on your own our expert team here at NBCS can help.
- Consider Opening another line of Credit
- Something that could help build your score up but could also harm your score is opening another Line of Credit. Whether this is with something like a small signature loan or a secured credit card or a regular credit card. Any option can help as long as you manage the account properly and get approved. Any hard inquiry will harm your score for a short time. As these accounts age, they will also help with the length of your credit history! We can also help remove these hard inquiries once your “shopping” is done and you have been approved.
- Create a Payment Plan
- Since payment history is the largest factor (~ 35%) in determining your score create a payment plan either on your own or with one of our experts! Creating a simple plan that not only guarantees you pay on time but even a little early is a great habit to form. If you were to open a new credit card consider putting something you use monthly like Netflix or Spotify and set it to auto-pay using your new card.
- Keep Balances low as you build your credit
- Make sure to keep any balances low, less than 30% utilization is the general rule of thumb. So a $500 credit card shouldn’t have a balance higher than $150. Having a low amount of debt is the second largest factor (~30%) in determining your score. So as your build your credit make sure to keep your balances low and under that recommended amount!
Although this is not a full list these are some of the best tips to start on your plan to build your credit up. Following these tips and using our services if you need credit repair is crucial to starting your credit journey and achieving your dreams.