6 Way to Boost Your Credit Score

Filed under "Financial Education"


To make sure you’re building a healthy credit history, consider the following tips:

  • Request a copy of your credit report – and make sure it is correct. Your credit report illustrates your credit performance, and it needs to be accurate so that you can apply for loans – such as a mortgage. Everyone is entitled to receive a free copy of his or her credit report annually from each of the three credit reporting agencies, but you must go through the Federal Trade Commission’s website at www.annualcreditreport.com, or call 1-877-322-8228.  Please note, you may have to pay for the numerical credit score itself. 

  • Set up automatic bill pay.  Payment history makes up 32 percent of your VantageScore credit score and 35 percent of your FICO credit score. The more you pay your bills on time, the better your score.

  • Keep balances low on credit cards and ‘revolving credit.’ Racking up big balances can hurt your scores, regardless of whether you pay your bills in full each month. You often can increase your scores by limiting your charges to 30 percent or less of a card's limit.

  • Apply for and open new credit accounts only as needed. Keep this in mind when a retailer offers you 10 percent off if you open a credit account.

  • Don’t close old, paid-off accounts. According to FICO, closing accounts can never help your score and can in fact damage it.

  • Talk to a credit counselor if you’re in trouble. Using legitimate, non-profit credit counseling can help you manage your debt and won’t hurt your credit score. For more information on debt management, contact the National Foundation for Consumer Credit (www.nfcc.org).

Your credit history and credit score are important, especially when you are looking for a loan,” explained Natalie Leisure, LSB loan officer. “A positive credit score can help you when qualifying for credit and in obtaining the best interest rates.  Our staff is knowledgeable about this topic and would be glad to provide more details related to your specific questions."

Contact Us

Email: leightonbank@leightonbank.com
Phone:  641-628-1566

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These tips are provided by the American Bankers Association and the Iowa Bankers Association


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