Are you having trouble qualifying for credit?
Were you denied a student loan?
Are you having difficulty securing an apartment lease?
Being financially responsible has many benefits, like having access low APR offers on auto loans, not having to pre-pay for your utilities, and being approved for a home mortgage. And in order to get there, you need to have a long-term plan that includes credit monitoring and management.
To help you change your credit score and change your life, here are 3 credit tips you need to know now:
1 – Check your credit reports
You are legally entitled to one free credit report every 12 months. Only by checking your credit report can you determine if all the information is accurate, so review them carefully and dispute incorrect, incomplete and inaccurate information. You can do this by writing a letter to the credit bureau and the party who provided the information. Don’t forget to include any supporting information, like proof of payment, and keep a copy of your correspondence.
2 – Prioritize and pay your debts
Debt can negatively impact your credit score. In fact, the amount of debt you have is 30% of your credit score! So, how does it work? The amount of debt you have compared to your credit limits is called credit utilization The higher your credit utilization, then the closer you are to your limits and the lower your credit score will be. Also, if you are paying off debt, you are paying interest, so you are losing money. Prioritize your debt by interest rate, and first pay off those debts with the highest rates.
3 – Create reminders to pay your bills
Your payment history is one of the key factors in determining your credit score. That means you need to pay your bills on time, so set up reminders in your calendar, and when possible, enroll in automatic payments.
RentReporters is helping the millions of renters to proactively impact their credit score by reporting on-time rent payments to TransUnion, one of the major credit bureaus.