3 Tips to Improve Your Credit Score

Whether we want to believe it or not our credit can play a big role when it comes to qualifying for financing to buy property.

The reality is the better your credit score the better your financing terms will be.  For instance, this could result in getting a better interest rate or even being required to put less money down.

Those two reasons in and of themselves are motivation enough for us to start paying attention to our credit score and finding ways to continue to improve it.  

Here are 3 quick ways that you can start improving your credit score tomorrow.

1. Keep Credit Limits High & Balances Low

When it comes to credit limit you should be continually trying to increase your credit limit.  Not to go and max out that limit, but to show that you are able to have a high credit limit, use the credit and keep a low balance.  If you are able to keep your balance low on a high credit limit, it is ideal for helping improve your credit score.  Therefore, a couple of times a year you should contact your credit card companies and ask for an increase in your credit limit.  Sometimes you can do this online in your online banking account.

2. Keep Open Older Accounts That Show Credit History

If you are determined to get rid of some of your credit cards to cut back, do so strategically.  Meaning, the cards that you have had the longest you should keep open.  Why?  All of that time that you have had that card and used the credit will help show your credit history which is one of the things that is looked for when determine credit score.

3. Become an Authorized User on Another Person's Account

In today's world having no credit can actually disable you when it comes to making big purchases. (i.e. house)  Therefore, having a credit history is crucial for you. If you don't have any credit or are looking to improve your credit become an authorized user on another's account.  So ask a parent, spouse, sibling, close friend, etc. to allow you to jump on their account.  Just be sure that you are taking care of the things that you are buying! 

These are 3 tips that you can start implementing today to help improve your score and get on the road to better financing terms for your next property purchase.