KNOXVILLE (WATE) – Improving your credit score can impact everything, from buying a car to the interest rate on your new house.
One of the best ways to improve your credit score is to make payments on time, even if it’s the minimum amount.
“If you miss one payment, that might stay on your credit score for seven years,” said financial planner John Fawaz.
Missing one payment, can have an immediate and negative effect on your score.
Cell phone providers, apartment management companies, car rental agencies and even potential employers might all be peeking at your credit history.
In order to demonstrate your responsibility to a lender, you need to pay their money back in full and on time.
“Car loans are good, home mortgages are good, if you have a credit card, just be very cautious,” said Fawaz.
Ideally, you want to have a credit score of 670 or better. To achieve a high score, you never want to spend more than 30 percent of your credit limit.
Resist the urge of opening up a number of new credit cards that you don’t need. “You think, well this might not hurt my credit, it does. Now creditors look at that and say, this is a much higher credit to
“You think, well this might not hurt my credit, it does. Now creditors look at that and say, this is a much higher credit to low-income percentage,” said Fawaz.
Paying off debt and keeping credit card balances low can help. Check your credit report to make sure there aren’t any mistakes with your information that could impact your rate.
On average, you can build up your credit score by 100 to even 150 points in six months to a year.