8 Ways to Improve Your Credit Score and Keep it Strong for the Future

As you learn more about managing your money, you realize exactly how much rides on your credit score. Whether you’re applying for your first credit card or buying your tenth house, your credit score will largely dictate your interest rate any time you borrow money—and sometimes, beyond.

If you are new to monitoring your credit, you may not fully understand the negative affect a few, seemingly mild actions—like maxed out credit cards or late payments—may have on your credit score, putting your financial dreams at risk.

Introducing a few good habits into your everyday money routine can help kick your credit into high gear, whether your goal is to rebuild a lower score or simply to maintain an already high score. Check out these eight helpful strategies:

1. Regularly check your credit score
   Luckily, it’s fairly easy to see your credit score. Most financial institutions and credit card companies provide it right inside their mobile app. One thing to keep in mind, these credit scores are not listed in real time so, if you are taking steps to improve your score, it may take a little while to see it reflected here.

2. Review your credit report
   Your credit report is key to knowing the state of your credit. View your report once annually at no cost through each of the three credit bureaus at annualcreditreport.com. Monitoring your report gives you the opportunity to correct any inaccurate information that may be damaging your credit score. Remember to confirm your personal information as well. It’s possible your credit history got intermingled with someone else’s because of similar names or other details.

3. Don’t sleep on disputes
   If you find flawed information in your credit report—like accounts that you don’t recognize or should be closed—consider making a dispute. Submitting a dispute is an opportunity to appeal, and hopefully correct, faulty information. Your submission includes filling out a form explaining the error and providing supporting documents and information to prove your claim.

4. Prioritize credit education
   Financial education on credit, and many other topics, is widely available to everyone. Most credit unions and banks offer access to education resources--ranging from articles, podcasts and videos to meetings with financial experts—to better equip members on their credit journey.

5. Eliminate debt
   A large contributing factor to your credit score is the amount of debt you carry. This is such an important component because it is how financial institutions determine your creditworthiness. If you have significant debt, consider meeting with a financial guide to create a payoff plan that works for you.
   
   One thing to keep in mind—in most cases, once you pay off your credit card debt, keeping the account open can benefit your credit score even more. Another factor that helps determine your score is credit utilization. This is the amount of revolving credit you’re currently using divided by the total amount of revolving credit you have available. The lower the ratio, the better for your credit score. So, when you pay off debt, and free up some credit, it’s always a plus.

6. Stay consistent with your payments
   Once you start improving your credit score, the focus moves to maintaining it and keeping it strong. Being consistent with credit card and other loan payments is the key to a healthy credit score. A great way to ensure you pay on time is to set up automatic payments for the minimum monthly amount. That way, you won’t forget or incur unnecessary late fees. You can always pay more in a separate payment if you want.

7. Reconsider how you use your credit cards
   Do you have so many credit cards it’s hard to keep track of them all? Do you stock your wallet with only your current favorite and leave the rest in a drawer somewhere? The reality is consistent usage of credit cards is helpful for raising your credit score.
   
   If you have credit cards you don’t use anymore, consider setting up one recurring online payment on each one. Or use it just for one type of item, like gas or travel—bonus points for using a card that offers rewards in that category! That way, your account gets used and promptly paid off, which helps your credit score—and you don’t have to carry every card with you all the time.

8. Practice patience and persistence
   Improving your credit score is not something that happens overnight. Damaging behavior such as missing or late payments could remain on your credit report for 7-10 years. While repairing your credit will take time, it is important to maintain healthy credit habits so, moving forward, your score will continually become stronger.

Your credit journey is a very personal one. However, it helps to have someone in your corner. Mountain America Credit Union has many resources to help you reach your financial goals. Have questions? Call our Service Center at 800-748-4302 or schedule an appointment online.