Ashley Temer is a Financial Representative with Northwestern Mutual who helps professionals, families, and business owners plan for financial security. She’s here for your “Money Minute.”
Here’s the thing about credit scores; they’re kind of a big deal. Here are five power moves to boost your score:
- Pay all your bills on time. 35% of your FICO credit score is based on how well you pay your bills.
- Reduce debt. You may fret over having hefty student loans or a large mortgage. As long as you’re paying those bills on time, they are not hurting your score. But carrying large credit card debt does impact your score.
- Add positive information to your credit report. This new trend is adding rent payments to your credit report and is a fast way to boost your score.
- Dispute errors in your credit report. This is one of the easiest ways to improve your credit score. Information that is outdated or can’t be verified must be removed from your credit report.
- Consider a personal loan to pay off credit card debt. The credit scoring system views personal loans as installment loans rather than revolving debt.