Having a high credit score can play a significant role in your next big purchasing decision. If you want to finance a car or get a mortgage loan, it’s crucial to have good credit. Not only will it be easier to secure a loan with a high credit score, but you will likely get a better interest rate, which can save you money in the long run. It also makes it easier to qualify for better credit card rewards and benefits.

Building good credit takes time, but by making informed decisions and using your credit cards responsibly, you will be well on your way to improving your credit. Here are six tips for increasing your credit score so that you can embrace new opportunities that come your way.

Pay Bills on Time

Pay your bills on or before they are due each month to keep your credit score in good standing. You can also set up automatic payments so that you don’t have to worry about missing deadlines.

Pay Down Credit Card Debt

Only spend what you can afford and pay your credit card bill in full every month to avoid accumulating unnecessary debt. This shows creditors that you can manage your money and pay back what you borrow.

Keep Credit Utilization Low

Don’t max out your credit card every month. The general rule of thumb is to keep your spending under 30% of your total available credit. If you’ve had your credit card for a while, you can also request a credit limit increase to improve your credit utilization rate.

Keep a Long Credit History

Your credit history plays into your overall credit score. The more experience your credit report shows of paying bills on time, the more information there is to determine that you are good at managing your credit. Closing older credit accounts could reduce the average age of all your accounts, negatively impacting your score. For this reason, it’s a good idea to keep your oldest credit cards open.

Limit Opening New Lines of Credit

When you apply for credit, the lender will run an inquiry on your credit reports, which will bring down your overall score. Opening new credit lines will also impact the average age of your credit history, which can lower your score.

Diversify your Credit

In addition to credit cards, having other types of credit such as a car loan or mortgage can improve your score. However, you should avoid opening new accounts unless you need them. Keeping a long credit history and paying off debt matters more than having a mix of different types of credit.

Whether you’re looking to build credit, pay down balances faster, or earn rewards, Poppy Bank offers a variety of credit cards to meet your unique needs and goals. To learn more, visit Personal – Poppy Bank or call (888) 636-9994 to speak with a bank representative today.

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Credit score improvement results may vary. Poppy Bank does not guarantee specific outcomes. Terms and conditions apply.