How to improve your credit score


You should not need a credit card, but you need good credit to qualify for affordable loans.

When asked how to improve their scores, Memphis residents had a variety of ideas.

“What you can do with these credit bureaus (is) negotiate with them not to pay the full balance,” Derrick Cubit explained.

“If you have a lot of different credit cards, you shouldn’t max them out,” Katrena Newson explained. “You absolutely have to pay them on time.”

In life, a good credit score will help you get affordable car loans, mortgages and credit interest rates.

“Focusing on a good credit score is essential,” said LaTina Moore, founder of Moore Financial Services in East Memphis.

A recent Zillow Report found that users with just a fair credit score will pay nearly $104,000 more over the course of a 30-year fixed mortgage than someone with an excellent credit score.

“With a great credit profile, it will allow you to keep more of the money you earn because you’re not paying it with astronomical interest rates and high fees,” she explained. .

Here are Moore’s recommendations for improving your credit score:

  • Use less than 10% of your credit limit

  • Make payments on time and pay off your debts as often as possible

  • Contact your creditors to settle your debts

“If you max out your credit cards, that’s a surefire way to drop your scores pretty quickly,” Moore said. “A good rule of thumb is that the lower the balance, the higher your credit score.”

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