How to stay on top of your Credit Score

Staying on top of and improving your credit score seems to be an everyday battle. It is very important to maintain your credit score to live a well-balanced life financially. If you are aiming to increase your credit score, one of the first things you should be doing is monitoring your credit score.

Here are 4 reasons why you should monitor your credit score regularly.

1. Helps detect errors or fraudulent activity:

Regularly monitoring your credit report and score can help you identify any errors or fraudulent activity on your accounts. If you notice any discrepancies, you can take action to dispute them and protect yourself from financial harm.

2. Enables you to negotiate better loan terms:

Your credit score is a crucial factor that lenders consider when deciding whether to approve you for a loan, credit card, or other financial product. Monitoring your credit score can help you stay informed about your creditworthiness and negotiate better loan terms or interest rates.

3. Helps you track your progress:

Monitoring your credit score over time can help you see how your credit habits are impacting your score. If you notice that your score is decreasing, you can take steps to improve it, such as paying down debt, making on-time payments, and keeping your credit utilization low.

4. Provides early warning of financial trouble:

A sudden drop in your credit score can be a sign of financial trouble, such as missed payments or high levels of debt. By monitoring your score, you can catch these warning signs early and take action to prevent further damage to your credit.

Now that you are monitoring your credit score, try following these steps to help see your score begin to rise!

1. Pay your bills on time:

Late payments can have a negative impact on your credit score. Make sure to pay your bills on time, every time.

2. Reduce your credit utilization:

Credit utilization is the percentage of your credit limit that you're using. To improve your credit score, aim to keep your credit utilization below 30%.

3. Don't close old credit accounts:

Closing old credit accounts can actually hurt your credit score. Keep your old credit accounts open, even if you're not using them.

4. Monitor your credit report:

Keep an eye on your credit report and dispute any errors or inaccuracies.

5. Diversify your credit mix:

Having a mix of different types of credit (such as credit cards, loans, and a mortgage) can improve your credit score.

6. Avoid applying for too much credit at once:

Applying for too much credit in a short period of time can hurt your credit score. Only apply for credit when you need it.

7. Build a long credit history:

The length of your credit history is a factor in your credit score. The longer your credit history, the better.

Remember that improving your credit score takes time and effort. Be patient and consistent in your efforts to improve your credit.

Overall, monitoring your credit score is an important part of managing your finances and protecting your financial well-being. By staying informed and taking proactive steps to improve your score, you can improve your chances of getting approved for loans and credit cards, and ultimately achieve your financial goals. Contact Denise at The Career Mompreneur for additional tips and tricks to stay on top of your credit by calling 773-217-8538 or email hello@thecareermompreneur.com