TENCU Chronicles

Here are some strategies to try.

Pay Often

Your credit utilization ratio — the percentage of credit you use — is a big part of your credit score. At the same time, you should always keep it below 30 percent. Ideally, you want it even lower than that, like 10%. The lower your ratio, the higher your score will go.

• • • How? One of the easiest ways to lower your ratio and boost your score is to make payments on your cards throughout the month, not just at the due date. Lenders report balances at the end of a billing cycle, typically 30 days. So, if you can knock your balance down to zero by making small, steady payments at the end of those 30 days, you’ll help your credit score.

Ask for More

Speaking of credit utilization, another way to lower it — and help your score — is to ask for a credit limit increase.

• • • How? Simply call your lender and ask for an increase. If you’ve been a loyal customer, they’re more likely to work with you. Your utilization will automatically increase when you have a higher limit, and your balance stays low.

    • Note: Remember that if you increase your credit limit and spend to that limit, you’re missing the benefit entirely. 

Pay Bills On Time

Perhaps the easiest way to increase your credit score is to pay your bills on time, every time. If you miss a payment by more than 30 days, it can hurt your credit score. So if you’re late, pay what you can as soon as possible. The more timely you pay bills, the more your credit score will improve.