Valley First

Tips to boost your credit rating

Getting your credit score back on track

You start building your credit rating the moment you sign up for your first credit card, and it’s a work in progress for the rest of your life. Having great credit is to your advantage and is the key to a brighter financial future—it can mean higher credit card limits, more opportunities to borrow money, and better interest rates on mortgages and car loans.

Five simple tips to boost your credit rating

  1. Pay your bills on time: It seems obvious, doesn’t it? Even so, the most organized and responsible person can forget to pay the bills sometimes. If you’re the forgetful type, use our online banking to schedule recurring payments so you’ll never miss paying a bill. Or use an online calendar and send reminder notifications to your smartphone or email when your bills are due.
  2. If a bill has gone to collections, pay it off as quickly as possible: It’s unpleasant but true—you don’t always have the money to pay your bills. Sometimes one or several of your unpaid bills might go to collections. If this happens, pay these bills in full as soon as you can, and then call to see if the creditor is willing to remove the collections notice from your credit report. Once the collections notice is removed, your credit rating should quickly improve.
  3. Accept an increase on your credit limit: If you’re offered an increase on your credit limit by the bank, consider accepting it—especially if you don’t plan on using much of it or maxing out your card. Having credit that you don’t use can help to improve your credit score. On the flip side, applying for more credit when it hasn’t been offered can set your credit score back a bit.
  4. Pay off your credit card twice a month: If max out your credit card every month, you can appear irresponsible with your credit card even if you’re paying it off in full and on time. Paying your credit card twice a month instead of once will help you look more responsible. It also gives you a great opportunity to regularly examine your spending and see if there are any unnecessary expenses you can eliminate.
  5. Use different kinds of credit when possible: Paying for big ticket items using a variety of credit sources is good for your credit score. Consider taking out a car loan when you need a new vehicle, an RSP loan at tax season, and sign up for a line of credit as a general financial safety net.

Talk to us

Whether you’re looking for more information, or you’d like to let us know how we can serve you, you’ll find our contact information here.
We encourage you to visit an investment advisor at any of our branches for more information on how Valley First can make things simple!