Five steps for improving your credit score

Indianapolis Recorder’s Money Smart Week continues with Everwise Credit Union sharing strategies for improving your credit score. Your credit score is a crucial part of your financial health. The three little numbers measure how likely you are to repay borrowed money. The most commonly used credit score model, FICO, has a range of 300 to 850. An excellent credit score (800+) can open the door to large loans with better interest rates, employment opportunities, and more. On the flip side, a poor credit score (less than 580) can be a strong impediment toward building wealth, funding large purchases and finding gainful employment. Here are 5 ways to boost your credit score. Pay bills on time. Carrying an outstanding balance, and/or owing lots of interest, shows that you are not timely with your bills. Setting up automatic monthly payments helps avoid late payments. Keep credit utilization below 30%. Credit utilization ratio is the amount of available credit you have and use. Keep your utilization under 30%. Consider accepting offers for increased credit – just don’t rack up huge bills by having all that additional credit. Maximize credit card payments. Find ways you can trim expenses or bring in extra cash to...