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Five ways to boost your credit score for the New Year


Consumers with higher FICO scores obtain lower interest rates. FICO scores are calculated from five groups obtained from your credit history. Here are the top five ways to boost your credit score:

Payment history (35%)
Phyllis tip: If you pay a bill late, contact the company and request that they not report you as late to the credit bureau. When you are not a chronic late payer, they often will accommodate.

Credit Utilization (30%) total debt you have versus how much credit is available.
Phyllis tip: If your credit card’s limit is $10,000 and you often charge more than half of that monthly, contact your cardholder and ask that they increase your card limit. You don’t want your credit to look as if you are maxing out your card limits.

Length of credit history (15%)
Phyllis tip: As soon as your adult children have a job, help them establish their credit. Start with low limits, perhaps just a gas card. When they buy a car, their name should be on the loan (even if just as a co-signer).

Credit mix in use (10%) Consumers with no credit cards are viewed as a higher risk
Phyllis tip: Slowly help your adult children establish their credit with a variety of accounts (credit cards, auto, etc.)

New credit (10%)
Phyllis tip: Consumers with a short credit history should not open multiple accounts in a short period of time.

It’s really not that complicated to boost your credit score! Remember to review your credit annually by obtaining a free credit report here

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