How to Boost Your Credit Score
The panel included Rod Griffin: Senior Director, Consumer Education and Advocacy, Experian; Christina Roman: Consumer Education and Advocacy Manager at Experian; Beverly Harzog: Credit Card Expert and Consumer Finance Analyst for U.S. News; Andrew Chen: Founder, HackYourWealth.com; Paulina Likos: Investing Reporter at U.S. News; Take Charge America; Lawrence D. Sprung: CFP® President of Mitlin Financial, Inc; Take Charge America; LaToya Irby: Credit Expert and Personal Finance Blogger; Kiplinger; and Leslie H. Tayne, Esq: Founder and Managing Director of Tayne Law Group, P.C. (f/k/a The Law Offices of Leslie H. Tayne, P.C.).
Questions We Discussed:
Q1: What is a good credit score, and why do credit ratings matter?
Q2: Why should you check your credit score regularly?
Q3: Does carrying a balance help your credit score?
Q4: How does utilization rate affect credit scores?
Q5: How do you build credit with a credit card?
Q6: How can identity theft affect your credit score, and how can you protect yourself from it?
Q7: When and how should you ask for a limit increase?
Q8: How can you get credit for making utility and cell phone payments on time?
Q9: What are some tips and strategies you can use to improve your credit score?
Q10: Any final tips on how to boost credit scores?
Retweet these insights from our community:
With #ExperianBoost, you can have utility, telecom, and certain streaming service payments included in your credit report to help increase your credit score. #CreditChat pic.twitter.com/ZyMzHIjaUG
— Experian #StaySafe (@Experian) October 14, 2020
A1:
A1: Good credit scores in general are scores above 700. Credit ratings matter because your score determines interest rates, loan approvals, lease approvals, and more. Renting an apartment, leasing a car, & taking out student loans usually factor in credit scores. #CreditChat
— Leslie H. Tayne, Esq (@LeslieHTayneEsq) October 14, 2020
A2:
A2: Checking your credit score will help you best understand the status of your credit profile. This is the score that lenders also see so knowing your credit history and working toward improving it will serve you well when applying for credit. #CreditChat
— Paulina Likos (@Paulina_Likos) October 14, 2020
A3:
A3. You will want to pay at least the minimum payment.
It is always vital to pay on time, paying late will certainly hurt your credit score, this question discussed in point 1 in “5 Credit Card Myths Hurting Your Financial Future”https://t.co/bimjxLENmM #CreditChat https://t.co/ubcP2QKtwM— Larry Sprung, CFP® (@Lawrence_Sprung) October 14, 2020
A4:
A4: As others have said, high utilization can decrease your score over time. It takes your total credit limit (possibly across multiple credit cards) into account, which means canceling a card but keeping spending levels the same can change your utilization quickly. #creditchat
— Sara Rathner (@SaraKRathner) October 14, 2020
A5:
A5: Making small purchases on a credit card and paying it off on time and in full every month is the best way to build your credit using a credit card. #CreditChat pic.twitter.com/HstnvojjAc
— American Consumer Credit Counseling (@ACCC_TalkCents) October 14, 2020
A6:
A6a. To protect yourself, regularly check your credit report to ensure all entries are correct. Shred financial documents & pre-approved credit offers before throwing away. Don’t carry your Social Security Card with you. Be careful when sharing financial info online. #CreditChat pic.twitter.com/wZWWyavkpV
— Take Charge America (@TCAsolutions) October 14, 2020
A7:
A7: Even if you don’t anticipate overspending your current limit, requesting a credit increase can still be advantageous. When you keep your spending consistent but have a higher overall limit, your credit utilization rate will drop. #CreditChat https://t.co/NMI0fGfixZ
— Forbes Advisor (@ForbesAdvisor) October 14, 2020
A8:
A8: Experian Boost to the rescue! You’ll get credit for on time payments for cell phone and utility bills, This can literally boost your score. Check it out. #CreditChat https://t.co/JTmzq2HXvy
— Beverly Harzog (@BeverlyHarzog) October 14, 2020
A8: You can now #ExperianBoost your credit score if you pay utilities or cell phone with a credit card. #creditchat
— Rod Griffin (@Rod_Griffin) October 14, 2020
A9:
A9. Pay your bills on time, tackle your debt in whatever method keeps you motivated, and be patient! If you need help, talk to a non-profit credit counselor. You can find one at @NFCC. Check out @navicorePR here in the chat too! #CreditChat
— Christina Roman (@Teena_LaRo) October 14, 2020
A10:
A10: Be patient. There are no quick fixes. Pay on time, keep balances low, apply only when you need to. Boring is good! #creditchat
— Rod Griffin (@Rod_Griffin) October 14, 2020