Today I’ll provide you with three ways you can slay your credit score.

 

Buying a San Francisco Home? Search ALL Homes For Sale
Selling Your San Francisco Home? Get a FREE Home Value Report

 

When it comes to getting a handle on your credit score so that you can raise it up, there are three things you need to do:

 

1. Clear up your collection accounts. This step shouldn’t come as a surprise; if you owe money, you need to pay it off. Many people fail to do this and instead consolidate their debts and move their balance from one card to another. This seems like a smart thing to do, and you might be lowering your monthly payments and your interest rates, but your credit score actually takes a big hit. You’re not paying off your balances by consolidating them—you’re just moving them around.

 

"Make sure you know how to use your card and pay it off responsibly."

 

2. Set up autopayments. Believe it or not, but 35% of your credit score is based on making timely payments. If you don’t pay, that will create a big dent in your credit score. A lot of times, this happens not because people can’t afford to pay their bills, but because they’re just so busy with their daily lives that they don’t remember to put the payments in the bank to pay off creditors. The autopayment option is extremely easy to do, and essentially all creditors make this option available these days. If you set this up, you can gradually increase your credit score each month.

 

3. Watch your credit limit. The experts say that you shouldn’t exceed 30% of your credit limit. For example, if your card limit is $10,000, you don’t want to have a balance that is more than $3,000. Here’s the tricky part, though: You also don’t want your balance to be less than 10% ($1,000 in this example) because credit agencies want to see that you have credit management skills. Make sure you know how to use your card and pay it off responsibly.

 

If you have any questions or want to buy or sell real estate, please feel free to reach out to me. I hope to hear from you soon!