Score provides a quick snapshot of your overall credit health. FICO stands for
Fair Isaac Corporation, the founder of the scoring system. The FICO Score is
the most used credit score system by lenders.
Once you know your score, you can use the following scale as a
general guide to see how lenders view your credit in terms of risk:
- Over 800: Very low risk
- 740–799: Low risk
- 670-739: Average risk
- 580-669: High risk
- Under 580: Very high risk
Tip #1: Pay on time
This might be one of the biggest steps to improving your
score. Payment history is one of the largest factors that determine your credit
score. So missing a due date or payments can have major implications.
Bonus tip: make sure you know the
payment cut-off time. If you miss the cut-off time, your payment may not be
credited until the next day and may be considered late. This can also add late
payment fees. First PREMIER Bank’s credit card cut-off time is 5 p.m. Central Time.
Tip #2: Recurring payments
Use recurring payments for subscription services like
Netflix or Spotify to build up your credit payment history. It can be easier to
budget for these expenses because it’s a set amount each month, unlike
groceries or utilities, which can vary month-to-month.
Bonus tip: set up
autopay to pay off your bill in full every month with PREMIER Auto Pay. You get
the double bonus of paying your bill on time and not carrying a balance on your
card. Learn more about
the program or enroll.
Tip #3: Review your credit report
You can request a free
copy of your credit report (different than a credit score) once a year from AnnualCreditReport.com.
This site allows consumers to review and print their Equifax®,
Experian®, and TransUnion® credit reports.
Review it carefully and look for errors. The Consumer
Financial Protection Bureau (CFPB) has a list of common errors to look for
when reviewing your report. If you find an error, follow these
steps recommended by the CFPB.
Bonus tip: You can
request a free copy of your credit report three times a year by ordering a
report from each of the three nationwide consumer reporting agencies
individually through AnnualCreditReport.com. This is a good strategy to watch
for reporting accuracy. Requesting your report does not affect your credit
Tip #4: Ask for help
Financial setbacks also happen, no matter how dedicated you are to improving your score. First PREMIER Bank’s credit card offers programs to assist cardholders. The cardholder and the account must meet specific criteria in order to be enrolled in either of the programs. For that reason, the process normally begins over the phone. Call 1-877-358-5002 to discuss the payment programs.
Building your credit score can take time. But the payoff is worth it as higher scores translate to a better financial outlook.
This information is presented for educational purposes only. It is not intended as, nor should it be construed to be, legal, financial or other professional advice. Please consult with your attorney or financial advisor to discuss any legal or financial issues involved with credit decisions.
The post Take steps to improve your credit score appeared first on Premier Perspectives.