Tips To Improve Your Credit Score

American Investment Planners LLC

500 North Broadway, Suite 260, Jericho, NY 11753

(516) 932-5130 / (866) 932-5130

If you've ever gone through the process of applying for a mortgage, buying a car, or even something as simple as signing up for a new credit card, then you are likely well aware of how important a good credit score is. And even if you haven't had these experiences yet, you are probably at least familiar with the idea of a credit score and what it means for you in various aspects of your life.

Since your credit score plays a major role in your ability to achieve success in several financial situations, we wanted to take this opportunity to offer a few tips that can help you improve yours; check them out below:

1. Always check your credit report for errors. Mistakes are a natural part of life (we all know that) but when they wind up on a credit report, they could be extremely damaging to your financial future. If any are evident, take the next steps by meeting with a financial expert to learn how to dispute them.
2. Make paying your bills on time a priority. Although many would think that this is a given, you would be surprised at how often people fall behind or miss their due dates. According to an article by U.S News & World Report MONEY, 35% of your credit score comes from your payment history - that's why it is so important to keep a close watch on your bills and stick to a rigid payment schedule.
3. Avoid cancelling old credit cards even when you aren't using them regularly anymore. Did you know that approximately 15% of your credit score is determined by the length of your credit history? Even though you might not be reaching for them in your wallet as often as you used to (but you should still be using them to some extent!), it's a good idea to keep accounts open to show that your history is still there.
4. Keep a close watch on how often hard inquiries are placed on your account. Hard inquires typically occur when financial institutions check your report to determine whether or not they will lend you a sum of money (for example, a mortgage). Since businesses that do so are required to tell you that they will be checking your report beforehand, you can keep a record of all of the potential hard inquiries that will affect your credit score. Hint: the less you have, the better!
5. Reduce your credit utilization rate by applying for higher credit limits. The amount of credit that you use directly influences your credit score, so by having a higher rate, it will seem like you are using less even if you are charging the same amount as you were in previous months. However, be weary of spending more if a credit increase is issued - just because you have more available doesn't mean you should use it all at once!

For additional tips on how to improve your credit score, please click here.

American Investment Planners LLC offers tax planning, estate planning, retirement planning and more to generations of families throughout the United States. More information about the services offered is available at www.americaninvestmentplanners.com.