When it comes to big financial moves like buying a car or home, renting an apartment or taking out a personal loan, your credit score carries a lot of weight. The higher your score, the better your chances of getting good interest rates and loan terms.
And rates and terms aren’t the only thing that your score can impact. According to Credit Karma, the difference between a “poor” and “excellent” credit score is more than $200,000 over the average person’s lifetime.
Here are some tips for boosting your score:
- Establish a Track Record
Another option is a secured credit card, which is backed by a cash deposit you make when you open an account. The account is usually equal to your credit limit, so if you deposit $500, you’ll have a $500 limit.
If you use these options carefully, you can strengthen your score enough to qualify for other types of loans — like a revolving credit line or payment installments on a car, mortgage or business loan.
- Stick to a Payment Schedule
It’s easy to stay on top of your cash flow with tools like Axiom Bank’s AxiomGO checkless checking account, which allows you to pay your bills and deposit checks from your mobile device. And Axiom’s Picture Pay online banking service allows you to set up one-time or recurring payments by simply taking a picture of the bill.
- Put a Lid on Your Balance
- Keep Tabs on Your Credit Reports
Considering how much your credit history can impact your life, it’s smart to take steps to raise your score. While credit can seem intimidating, it doesn’t need to be a total mystery. When you have the right information and a step-by-step plan, you can move confidently into your financial future.
Urjit Patel is Executive Vice President of Consumer Banking at Axiom Bank, N.A., a nationally chartered community bank headquartered in Maitland. He can be reached at firstname.lastname@example.org or 321-972-3971.