5 tips for improving your credit score

Whether you’re looking for a car loan, submitting a rental application, or applying for a mortgage, it’s important to have a good credit score. If your current credit score is suboptimal, here are five things you can do to rebuild it.

1. Pay your bills on time. Always pay bills in full before the due date. If you can’t pay the total amount, at least make the minimum required payment.

2. Don’t max out your cards. It’s best to use no more than half of your available credit (for example, don’t put more than $500 on a credit card with a $1,000 limit). If you always max out your card, lenders will consider you a high-risk loan candidate. Also, never surpass your credit card limit.

3. Be a loyal customer. Don’t switch credit cards or financial institutions unnecessarily. The age of your credit history impacts your credit score.

4. Get credit checks infrequently. If a lender or company files a request to view your credit report, which is known as a hard inquiry, it’ll impact your credit score. Conversely, checking your credit yourself, which is known as a soft inquiry, won’t affect your score.

5. Have multiple types of credit. Using more than one type of credit (for example, a credit card, line of credit, and mortgage) tends to improve your credit score. Just be sure that you’re able to pay back everything you borrow.

To get more advice about building up your credit score, reach out to a qualified financial adviser.