Best Ways To Keep Track Of & Increase Your Credit Score

Your credit score is kind of like your financial GPA. More technically, a credit score is a 3-digit number that gives lenders an idea of your borrowing habits. When you have a credit card, your payment history, usage and length of account are reported to the 3 credit bureaus (FICO, Trans Union & Equifax) - when reported, your score changes.

Your credit scores can affect whether a lender approves you for a mortgage, auto loan, personal loan, credit card or other type of credit. And if you’re approved, your credit scores will also help determine the interest rate and terms you’re offered.

You can use services like CreditKarma or Experian, but your bank or credit card may offer credit tracking as well. 

Keeping track of your score is one of the first steps to making sure you are on the path to good credit. 

Here are some of my tips:

1. If you don't have a credit card, start there. There are tons of options out there for students, travelers, shoppers, etc - my recommended cards are the Capital One QuickSilver Card because you get 1.5% cashback on all purchases and the Sofi credit card - not only is it a great starter card, they have a high yield savings account offering 1% APY.
2.  Have a family member or elder friend that you trust add you as an authorized user on their longest standing card. While you never have to use the card, you will get the bonus of their credit age.
3. Set yourself up for success from the start by setting up auto-pay to make sure you never miss a payment. If you're concerned about missing a payment, reach out to your creditor as they can usually arrange a delay or adjustment. 
4. Keep your revolving credit balance less than 30% of your available limit. Credit utilization more than 30% can start to bring down your scores, and people with the best credit scores tend to keep their credit utilization under 10%. 
5. Check your credit report for anything reported in error. If you have any collections, or negative remarks that are not supposed to be there, call the bureau it is reported with to dispute it. 
6. If you have had a past collection, or late payment, don't stress the past. Focus on what you can do for yourself moving forward whether that's a pay and delete situation with the creditor, or waiting for it to drop off your report - start creating the habits to make sure you have good credit for the rest of your life.