By Betsy Young, MSUFCU Vice President of Marketing and Communications
Did you know that a few small changes can lead to a big boost in your credit score? A strong credit score opens the door to better rates and terms when applying for loans or upgrading your credit card.
A credit score in the 670 to 850 range signals to lenders that you’re reliable and likely to repay loans on time. But remember, a great score isn’t built overnight – it takes time and smart financial habits. Here are three simple strategies to help you elevate your credit score:
1. Keep Your Card Balances Low Carrying a balance on your credit card? Paying it down — or better yet, paying it off — can work wonders for your credit score. Your credit utilization, the percentage of your available credit that you’re using, plays a big role here. Aim to use 30% or less of your total credit limit to keep your score climbing.
2. Pay Your Bills On Time Your payment history is the most significant factor influencing your credit score, accounting for 35% of your total score. Even one late payment can leave a lasting mark on your score. The solution? Set up automatic payments through your financial institution to make sure you never miss a deadline.
3. Keep Your Credit Cards Open It might seem smart to close credit cards you’ve paid off, but not so fast! Keeping those accounts open can actually improve your credit utilization ratio, which could positively impact your score. So, think twice before closing those unused cards.
Looking for a way to manage your credit more effectively? MSUFCU can help. Whether it's setting up automatic payments through MSUFCU’s online banking or mobile app, using an MSUFCU Visa Credit Card to monitor and manage your spending, or exploring a range of financial products to diversify your credit mix, MSUFCU has the solutions you need to boost your credit score and build a strong financial future.
For more information, visit msufcu.org/visa.
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