5 Simple Ways to Increase Your Credit Score

I am not an accounting or financial professional, but I have experienced increasing my credit score by my own efforts.

I have an Associate’s Degree in Accounting, but the following ideas are from my experience and life. I hope you will use one or more of the ideas on your own journey.

If you need professional assistance, please contact the appropriate individual.

Throughout the years, I have spoken to professionals about my credit score. Specifically, I spoke to both an attorney and a CPA.

Additionally, I did extensive research myself.

Implementing this handful of ideas has changed my credit score, for the better.

5 Simple Ways To Increase Your Credit Score

#1 Way To Increase Your Credit Score

Open a Savings Account and Checking Account

I have had a checking account for years, but not a savings account.

I simply opened up a savings account and attached it to my checking account.

Make sure that there is an activity in your account each month. Whether you deposit, withdraw, or transfer, make it a point to do it a few times per month.

You must have both an active savings account and a checking account.

#2 Way To Increase Your Credit Score

Open a Credit Card Account

Many people do not believe you do not need to open a credit card account.

At one point in my life, I used to be one of them.

I think it is important to have at least one card that you can use specifically for emergencies.

With credit card debt, just make sure you do not have any. Make sure you pay off any balance you charge at the end of the month.

This way, you cannot get into any trouble overspending. As long as you can maintain self-control with your spending habits, you are good.

#3 Way To Increase Your Credit Score

Pay Your Bills On Time

This seems simple, right?

Wrong.

Most Americans are living a lifestyle well above their means.

With paying your bills, make it a point to pay them on time. Do not let them become overdue. You will only have to pay extra late charges on top of what you already owe.

Do not let yourself get in the position of getting behind on your monthly bills.

#4 Way To Increase Your Credit Score

Do Not Close a Credit Card Account

If you have a credit card account open, do not close it.

Try to use it at least once a month and pay off the balance.

Only close a credit card account if you feel it will get you into trouble. If you feel you will overspend because of it, then get rid of it.

#5 Way To Increase Your Credit Score

Pay Down Your Debt

This one is huge.

If you have credit card debt, pay it down.

If you have student loan debt, pay it down.

Even if it is an extra $5 per month. Over time, that amount will build up.

We are such a credit-dependent society that it will only help to pay down your debt.

Getting rid of the debt is even better.

I would like to make a quick disclaimer here. By following these 5 simple ways to increase my credit score, I could do so by 100+ points.

Please do not take this number as gospel. Some will increase theirs by more and others will remain unchanged.

It really depends on your financial situation along with your goals.

Like it is with anything in life, you cannot go wrong with being proactive and trying.

Having a proactive attitude with your finances can only benefit you.

To find further support, keep reading future articles published in The Poehler Family Blog.

You can also contact a financial professional to discuss your unique situation.