5 Tips for Improving Your Credit Score

– There are a number of reasons why a credit card application may be denied. But one of the main reasons is because the applicant’s credit
score isn’t high enough. But this doesn’t have to
be a permanent situation. Your credit score is
fluid and always changing, and there a number of actions you can take to help boost it. The first thing you want to try is to check your credit reports to make sure they’re accurate. Since you’re credit
score is based on what’s in your credit reports,
you’ll want to verify that the information in them
is correct and up to date. Another thing you may want
to try, or try not to do, is avoid applying for
new credit anytime soon. When you actively apply for credit, creditors do what’s called a hard inquiry to your credit report. A hard inquiry can lower your credit score by several points. So you may want to put off
applying for more credit until you get your credit
score where you want it. If you have older credit card accounts that you don’t use much anymore and you’re thinking about closing them, it could more beneficial
to your credit score to leave them open. Closing older accounts could lower your credit scores two ways. It could reduce your
total amount of credit, which could in turn raise
an important equation that accounts for up to
30% of your credit score called your credit utilization ratio. Closing older credit
card accounts could also decrease the average age of your accounts, another contributor to your credit score. It’s typically better to leave
these older accounts open and not use them or rarely use them, while also paying down any
outstanding balances on them. The lower your debt and the
higher your total amount of credit the lower this ratio will be, which could boost your credit score. Finally, perhaps the most important thing you can do to improve and
maintain your credit score is to make consistent on-time payments. Payment history is the number one factor in determining your credit score. So it’s critical to pay on time every time in order to build a healthy score. By putting these suggestions into action, and diligently staying
on top of your credit, you may be able to move the
needle on your credit score. Once you do, we encourage
you to apply again for credit, particularly with Credit One Bank. Thanks for watching and good luck. (peaceful music)

2 comments on “5 Tips for Improving Your Credit Score”

  1. Anthony Rose says:

    I know credit One is stater Card I think they should raise their limits to 5,000 on Visa & Master Card. Just putting that info out their.

  2. Griffin Brumley says:

    Good videos. Please remove your guys' annual fee on platinum card? Thank you!

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