From Good Credit to Excellent Credit
While good credit is something to be proud of, remember this: there’s a little bit of room for improvement. By taking a few key steps, you can move into the excellent credit score category, which brings you even more benefits.
Here’s what you need to do:
1. Take Your Time
You want to boost your credit score quickly, but it doesn’t always work this way. Depending how far away you are from excellent credit territory, it could take six months or more to achieve your goal.
When you have a plan and exercise patience, you’ll steadily inch toward an excellent credit score.
2. Pay All Your Bills on Time
It’s easy to relax when you have a good credit score. You know you should pay your bills in full and on time, but you may slack off for one reason or the next.
If you want to take your credit score to the next level, you should always pay your bills on time.
Tip: set reminders on your smartphone so you never forget when your bills are due.
3. Review Your Credit Report
When was the last time you reviewed your credit report? If it’s been a while, don’t wait another day to take a closer look.
Many credit reports contain at least one error, which can drag down your score. By correcting inaccurate data, your score may experience an immediate bump.
4. Limit Credit Applications
It’s okay to apply for credit when necessary. For example, if you’re buying a new car, shopping around for the best loan can save you money.
However, you want to avoid too many hard inquiries over a short period of time. This can harm your credit score, thus making it more difficult to reach the next level.
Note: a hard inquiry can affect your credit score for as long as one year.
5. Pay Down Your Balances
Paying down your balances will give you peace of mind, while also boosting your credit score.
For example, if you have a $10k balance on a credit card with a $10k limit, start paying it down as quickly as possible. As your balance gets smaller, your credit score is more likely to rise.
Final Thoughts
A good credit score is an achievement, but don’t stop there. Continue to push yourself with the hopes of achieving an excellent score in the near future.
Once you reach this level, you’ll find that it provides you with a variety of financial benefits.
