March is National Credit Education Month, and for both individuals and businesses, building and maintaining a solid credit score is important. After all, a strong credit score will help you be successful in areas ranging from renting property to applying for a loan.
The following, are a few simple tips to help you or your business:
Know your credit score
The first step in improving your score is to know where you stand. Credit reporting companies can provide a detailed report where you can see your score and how various accounts impact it. It’s also important to frequently check your score to ensure there are no errors being reported which could have a negative impact. Some services will even send email alerts with any positive and negative changes to your score.
If you see an error, dispute it
By constantly monitoring your credit score, you might catch something that has been reported in error. If this happens, dispute the error to get it removed from your report as quickly as possible.
Make payments on time
Making payments on time is very important for building your score. Missed and late payments can quickly have a negative impact, so be sure to stay on top of payment dates. Mark your calendar or set reminders to ensure on time payments.
Pay off debts
This may seem obvious, but paying off debt will reduce the ratio of debt to available credit, which in turn helps build your score. Even small payments that chip away at debt can help!
Building and maintaining a good credit score can help you as you prepare for your next big project or purchase. These are just a few of the ways to improve your score, and we encourage everyone to continue learning and taking steps to building a great credit score.
If you are planning on applying for a loan to help finance your next big milestone, talk to one of our expert bankers to find the best option for you. Visit our financing solutions page for more information.