Your credit score is an important number that can help increase your buying power. It shows creditors that you are not a risk should they choose to extend credit. A poor credit score could stand in your way of owning a home or even purchasing a car.  While raising your score will not happen overnight, there are steps you can take now to improve it down the road.  Here are six things to consider.

Six Ways to Improve Your Credit Score

1. Keep an eye on credit balances – Having a high level of debt on revolving credit cards could be detrimental to your credit score. If your credit debt is more than 30% of the available funds, pay down your balances and keep them low.
2. Eliminate small balances – Another factor in your credit score is how many balances you have. If you have a lot of small debts on several credit cards, pay them off. Choose one or two cards that you will use for purchases instead of several small cards.
3. Don’t remove old debt – Debt that you have paid off shows that you are a good credit risk. Do not ask to have this removed from your report. If you have a solid repayment history, show it off!
4. Pay bills on time – This is crucial to retaining a good credit score. Don’t skip payments one month to save up for a down payment or other big purchase. Nothing drops your credit score faster than a missed payment.
5. Don’t pay less – In addition to missing payments, if you suddenly stop paying as much as you had in the past, it could be a red flag. Don’t take cash advances from your cards as this could show money issues. While it is likely these things will not impact your credit score, they could impede your ability to get a loan.
6. Double your payments – Even if you pay your credit cards off monthly, if you run up a big balance, it could be a problem for your credit score. Because creditors only report to credit bureaus once a month, depending on where you are in the payment cycle, a high balance could be detrimental.

If you have questions about your credit score, contact the banking professionals at Queensborough National Bank and Trust Company.

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