Credit Card Tips

Tips to Increase Your Credit Score

Improving your credit score can unlock better financial opportunities.

Here are some practical tips to give your score a boost:

1. Pay Your Credit Card Before the Statement Close Date

Many people focus on the due date, but paying before the statement close date can positively impact your credit utilization ratio.

• Statement Close Date: The date when your billing cycle ends, and the card issuer calculates your balance to report to credit bureaus.
• Due Date: The last day to pay your bill without incurring late fees.
  By reducing your balance before the statement close date, you lower the amount reported to credit bureaus, improving your utilization rate.

2. Use Credit Cards for Bills and Pay Them Off Regularly

Leverage your credit card for routine expenses like utilities and groceries, and pay it off with your income.

• Set up auto-payments for both bills and credit card dues to avoid missed payments.
• This method keeps your utilization low and establishes a consistent payment history, which is a major factor in credit scores.

3. Request Credit Limit Increases

Increasing your credit limit can lower your credit utilization ratio as long as your spending doesn’t increase.

• Call your credit card issuer or request an increase through your online account.
• Many issuers review your account and approve requests automatically if you have a good payment history.

4. Keep Utilization Under 30%

Credit utilization is the percentage of your available credit that you use.

• Aim to keep it below 30% of your total credit limit. For example, if you have a $10,000 limit, try to maintain a balance below $3,000.
• Lower utilization ratios (below 10%) are even better for your score.