Bulk Up Your Credit Score

A debt crisis based in part on defaulted loans has resulted in an economic climate that favors the financially responsible. A poor credit score can keep Nassau County, NY residents from basic advantages that come with prosperity – home ownership, business growth, personal development, and retirement.  But it’s not difficult to improve your credit rating with some basic practices. It takes time, discipline, and oversight, but the benefits are well worth the effort.

If you think a poor credit score is chiefly an obstacle to getting a decent interest rate on a loan, think again. For starters, you should know who looks at your credit history. If you’re applying for an apartment lease, an insurance policy, or even a job in Nassau County, NY, bad credit history can affect your chances. In fact, credit scores are an essential part of your identity. So taking the time to learn how credit scores are earned and how your borrowing and spending affects you will ultimately work to your advantage.

Good credit ratings aren’t just about paying off loans and credit card debt, but those are absolutely fundamental to improve your score. It seems obvious, but something as straightforward as regular, on-time payments over an extended period will help your rating. Use automatic payments such as online bill pay to ensure you don’t miss a due date. If you make a late payment, don’t worry too much: Focus on making payments on time over the next several months. Negative incidents are less likely to affect your score the further back in time they occurred.

The more debt you can pay off, the better your score. But even if you’re carrying more than one balance, as long as the debt is spread out, it works to your advantage. In other words, large gaps between your credit limit and your balance on more than one card is less likely to hurt your score than a single card carrying a large balance. It’s helpful to aim for about 10 percent of your credit limit, although spending anything under 30 percent is good. Recognize, too, that your credit rating depends on your use of credit—paying cash for everything will not help your score and could hurt it.

Another way to improve your credit is to transfer your credit balance to an installment loan. These kinds of balances will have less of a negative impact on a credit score formula (but they will also have higher rates, so judge carefully before taking that step).

You may think that a bad credit score will only affect your chances of getting home or car loans in Nassau County, NY. The truth is that your credit score has a much broader impact. So do your homework: Learn your score, study your credit history, and start planning your path to a better credit rating.