How to improve your credit score

0

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.”

Download the FOX13 Memphis app to receive alerts on breaking news in your neighborhood.

CLICK HERE TO DOWNLOAD

Trending Stories:

Share.

About Author

Comments are closed.