3 Easy Ways to Raise Your Credit Score

Try these simple tips to boost your score

Raising your credit score isn’t as hard as it seems. If yours is low, you can improve it with a little time and dedication. A high credit score will get you better offers on credit cards, lower interest rates on loans and mortgages, and more. Here are three simple steps you can take to raise your score.

Pay Bills on Time

Pay your bills on time, every time. Payment history is the biggest factor in determining your credit score. For example, with the VantageScore 4 model, payment history makes up 41 percent of your score. If you pay your bills on time, your score will improve. If you’re having trouble remembering when your bills are due, set up autopay and/or set calendar alerts to help you pay on time. 

Check Your Report

You can access your credit report from the three bureaus — Experian, Equifax, and TransUnion — for free at least once annually via annualcreditreport.com. You can also review your full credit report securely within Digital Banking using our free Credit Sense tool.  Check the report for inaccuracies that could be dragging down your score. It’s more common than you might think. In one study by the FTC, 25 percent of reports contained an error that negatively impacted the person’s score. If you find an error, report it so that your score can rebound.  

Keep Usage Low

Your credit utilization ratio (CUR) is the second-most important factor in determining your credit score. Your CUR is your total credit balance divided by your total available credit. Our Credit Sense tool will calculate your CUR and track it over time for you!  You want your CUR to be 30 percent or lower.

Let’s say you have two credit cards with a total limit of $15,000. If your total balance on those two cards is $2,500, your CUR is 16.67 percent, which is great. However, if you have that same limit but your total owed is $6,500, your CUR would be 43.33 percent, and that’s not good at all. Keep your CUR as low as possible and watch your credit score creep higher and higher.

Article written by Jean Chatzky with reporting by Casandra Andrews.  Editing done by Adventure Credit Union