Your credit score has a major impact on your life. It determines whether or not you get fair rates on personal loans, what insurance premium you get, and rental decisions when taking out a new lease on an apartment. However, you don’t have to settle for bad credit. In fact, raising a low credit score is not just doable–it’s relatively simple. 

How to Improve Your Credit Score

1. Pay Down Your Debts

Credit cards may be convenient, but carrying a balance or maxing them out can hurt your credit score. Rather than relying on these cards, try to reduce your spending to what you can comfortably pay off each month. Once you have a budget established, work to pay down your debts and reduce the balance you carry on your cards each month. The sooner they are paid off, the faster your credit score will recover.

2. Avoid Cancelling Old Cards

Credit scores are partially based on the length of your credit history. If you no longer use your first few credit cards, continue not using them. By leaving them on-record, you’ll ensure that your credit history extends as far back in the past as possible. This will help if you’re looking to take out personal loans or want to qualify for a mortgage in the future.

3. Monitor Your Credit

Your credit score determines the interest rate you receive for personal loans, consumer loans, and even your first mortgage. Monitoring your credit will allow you to stay up-to-date on all changes. If you notice anything amiss, you’ll be able to contest it with the credit bureau and keep your credit in good standing at all times.

Whether you’re looking for personal loans to help you achieve your dreams or want a credit union to help you take control of your finances, Spirit of America Federal Credit Union in Lincoln, NE, is here to help. Their dedicated tellers and credit card specialists will help you improve your credit so you can get the money you need. Learn more online and call (402) 467-1102 to schedule a consultation today.