By Keely Aouga
Credit is a finite resource — but so are your time and energy. Increasing your score might seem overwhelming, but it doesn't have to be.
Your credit score is used by lenders to determine your risk as a borrower. This three-digit number between 300 to 850 is created by a mathematical algorithm and based on financial data.
Your score is made up of a number of elements including past payments, utilization and length of credit history.
Excellent is the best credit score you can have.
Your score is placed into a ranking based on how high it is. The higher this number, the better your options will be.
One way to improve your credit score is by simply calling your card issuer and asking them to increase your credit line.
The purpose of a credit increase is to lower your utilization ratio, which accounts for 30% of your score.
Regardless of your limit, make sure that you can pay off your balance. You can do this by using a personal loan to pay off your credit card in full.
Make sure you keep more money in your checking account than what you charge to your cards, so you never again have to worry about paying your bills late.
Closing a credit card that you no longer use can negatively impact your score. Bureaus consider the length of time your accounts have been open when determining your credit score.
There are credit monitoring resources online that can analyze your data. They provide free, periodic access to your score, including any factors that negatively impacted it.
With the help of these low-maintenance ways to boost your credit score, you can stay ahead of the game when it comes to your overall financial well-being.