How to Get the Highest Credit Score Possible in Steps
Did you know your credit score can be a powerful tool in helping you to achieve your financial goals? It can also be a double-edged sword that can limit your ability to borrow money, get a loan, or even rent an apartment.
The key to getting a high credit score is knowing how to take the right steps to improve it, to get a high credit score, you need to understand how it is calculated, how it’s used, and how to make the right changes to get it to where it needs to be
Never use your credit card for purchases that aren’t necessary
This is the first step to improving your Credit Score you should only use your credit card for purchases that you can afford and pay off in full each month. If you have a limit of $1,000, then you should never spend more than $900, leaving room for emergencies.
When you don’t spend over your limit, it will show up on your credit report as Available Credit, that’s a good thing because it shows potential lenders that you are using the money they are giving you responsibly.
If you do find yourself over the limit or with a high balance on one of your cards, don’t worry; there are plenty of ways to reduce the number and improve your score.
2. Keep your credit utilization rate low
One of the most important factors in your credit score is the percentage of your available credit that you’re utilizing, the more of your available credit you use, the lower your credit score will be.
The best way to keep your utilization rate low is to limit how much debt you take out. It’s always better to make sure that less than 30 percent of what’s available on your card is used up at any given time, as long as this number stays below 30 percent or so, then you should see an improvement in your score.
3. Stay on top of your credit card bill
This means paying off the balance in full each month, and only charging what you can afford, a good rule of thumb is that if you can’t afford it, don’t charge it, obviously, this will help you avoid late fees and other penalties that come with not paying your bill or monthly payment on time.
Staying on top of your credit card bill also means keeping a close eye on how much money you have left in your account at the end of the day.
You want to make sure that when the month ends, your balance is low enough so that it doesn’t get charged an over-the-limit fee.
Another way to keep a high credit score is by not spending more than 30 percent of the available credit limit on one card.