How to Boost Your Credit Score


When it comes to boosting your credit score, it takes more than a quick overnight fix. The process of improving your credit score entails a number of elements, including keeping up with on-time payments, monitoring your credit score, and making sure you’re not overspending. Considering the fact that your credit score can affect anything from interest rates, approvals on loans, or renting / buying a home, it’s vital to make sure it consistently stays above 600, at the very least.


At Polam FCU, we are here to help you make the financial decisions that best suit your budget and your lifestyle, and we’re also here to provide you the best information and advice about how to maintain good financial health. Here are a few necessary, everyday things you can do to boost your credit score:


  • Pay your bills on time. This seems like a no-brainer, but it’s not uncommon for some to put off paying certain bills for a myriad of reasons. However, your payment history makes up roughly 35 percent of your credit score, and even just one late payment can affect it. Setting mobile alerts for your payment due dates is just one way you can make sure your bills are paid on time, and you can use the Polam mobile app to pay on the go.


  • Pay off debt as you go – and avoid minimum payments if possible. Your debt-to-credit ratio is one element that can affect your credit score – the lower it is, the better your credit will be. Whenever possible, pay more than the minimum payment every month, or try doubling it as often as you can afford to. Making an extra mortgage payment every year can also make a difference if you’re a homeowner.


  • Don’t push your credit limit to the max. Let’s say you have a credit limit of $10,000. Before buying big-ticket items or planning excursions, ask yourself this: do I really want to max out my credit? The easy answer: no, you certainly don’t, as you need to keep your credit availability open for when you need it, and you definitely need to spend only what you can budget in monthly payments.


  • Track your spending at all times. This seems like a no-brainer, but you’d be surprised just how many people don’t watch what they spend and check their checking account / credit card statements on a daily basis. It can be incredibly easy to overspend when you have a credit card, so making sure charges don’t add up too quickly is important for boosting your credit score and ensuring you can afford your monthly payments.