• Skip to main content
  • Skip to primary sidebar
  • Skip to footer

MW Group LLC

Our business is helping yours

  • Home
  • About
  • Services
    • Growth Planning
    • Taxes
    • Accounting
  • News and Resources
  • Contact
  • Client Portal
Home > Business Issues > Increase Credit Score

Michelle Ward / October 20, 2018

Increase Credit Score

Give your Credit Score a Boost

Your credit score is one of the most important aspects of your financial health. It is used by potential lenders, landlords and even employers to analyze your financial situation in one way or another. Here are some tips that might help you improve your score:

  • Review your credit report and, if necessary, fix errors. You are entitled to one free credit report from each credit reporting company per year at Annual Credit Report. It is important to check for reporting errors that could be negatively affecting your score. If you find an error, contact the company reporting the information and the credit reporting company to challenge the report. Common errors include closed accounts showing as open, incorrect balances or limits and accounts opened by someone else due to identity fraud.
  • Pay off your credit card each month. By making purchases on a credit card and paying the entire balance each period, you are developing a positive credit history and displaying sound financial management skills. This will increase your credit score. To meet this goal you will need to keep your spending under control. If you are unable to pay off the card, you will start to accumulate revolving debt that will hurt your credit score.
  • Make your payments on time. Late payments, even by one day, can be one of the most damaging hits to your score. If possible, set up automatic payments for as many bills as possible to lower the risk of forgetting to make a payment. The longer your history of paying on time, the more your score will improve.
  • Pay down your debt. Another large chunk of your credit score is calculated based on the amount of debt outstanding. Mortgage lenders specifically use a debt-to-income ratio to determine loan eligibility. In addition to the amount of debt you have, you also need to pay attention to the debt limits you have on your accounts. The closer your debt is to the limit, the worse your score will be.
  • Don’t allow an account to go to collection. Collections will stay on your credit report for seven years! Avoid having any of your accounts go to collections if at all possible. Medical bills and other one-time expenses are often the types of accounts that find themselves in collections. If you are unable to pay a bill in full by the due date, call the company and see if they have payment plans or other programs to get the bill paid without going to a collection company.

Regardless of where you are on the credit score spectrum, you should actively monitor your credit. Implementing these ideas will improve your credit score as well as your long-term financial well-being.

Filed Under: Business Issues

Primary Sidebar

Get To Know Us

 

Free Consultation

Categories

  • Accounting
  • Business Issues
  • Our Story
  • Payroll
  • Tax

Where’s My Refund

Find out the status of your tax refund on these government tax sites.

  • My IRS Refund Status
  • My PA Refund Status

Get Our Advice in Your Inbox

Get organized with our income and expense spreadsheet template.

We never share your info.

We completely trust and rely on Shawn Cahill – for his expertise, his diligence, and his thoroughness

Matthew M.

Professional and forward thinking make the MW Group a good solution if looking for a new tax advisor Group.

Mike D.

Footer

Pottstown CPA firm specializing in growth planning, tax return preparation, and accounting.

MW Group, LLC

2500 E. High Street
Pottstown, PA 19464
[email protected]
+1 610 708 5700
  • Rss Feed
  • Facebook
  • Twitter
  • LinkedIn
  • Google Maps

Any advice contained in this website is not intended or written to be used for purposes of avoiding tax penalties that may be imposed on any taxpayer.

Copyright © 2014–2023 MW Group LLC · Privacy Policy · Site Design by Delos Incorporated