Do you buy stuff?

If you answered “no” to this question, then please check out one of our many other articles and congratulations on your lack of need for “things”.

If you are a consumer of goods, then please read on as to why your credit score is important.

A credit score is an important financial tool that lenders use to assess a borrower's creditworthiness.

Your credit score is a numerical representation of your credit history and indicates how likely you are to repay debts on time.

A good credit score makes it easier for you to secure loans, credit cards, and other financial products at favorable interest rates and terms.

On the other hand, a poor credit score can result in higher interest rates, less favorable loan terms, and even disqualification from certain types of loans or credit. Boooooo!

Overall, a good credit score can open doors to new opportunities and help you achieve your financial goals.

Beyond lending, your credit score can also impact your ability to rent an apartment, get a job, or even obtain insurance coverage. Therefore, it's essential to maintain a healthy credit score by making timely payments, keeping credit utilization low, and monitoring your credit report regularly.

Here are some ways to increase your credit score

1. Pay bills on time: Late payments can have a significant negative impact on your credit score, so make sure to pay all of your bills on time.

2. Keep balances low on credit cards: High credit card balances can hurt your credit score, so aim to keep your balances below 30% of your credit limit.

3. Dispute errors: If you find errors on your credit report, dispute them with the credit bureaus.

4. Limit new credit applications: Each time you apply for credit, it can negatively impact your credit score, so limit the number of new credit applications you make. Be strategic with how you utilize your credit cards. See: “Why You Should Go On a Mattress Run.”

5. Pay down debt: Be like Tyrion Lannister! High levels of debt can harm your credit score, so work to pay down debt and maintain low balances.

6. Keep old credit accounts open: The length of your credit history makes up a significant portion of your credit score, so keep old credit accounts open even if you're not using them.

7. Don't close unused credit cards: Closing credit cards can shorten the length of your credit history and hurt your credit score, so avoid closing unused credit cards. Consider putting one monthly subscription on an unused card to show the credit usage.

8. Make payments regularly: Regular payments, even if they are small, can help to improve your credit score over time.

9. Avoid maxing out credit cards: Maxing out credit cards can hurt your credit score, so avoid reaching your credit limit on any one card.

   Your debt-to-credit ratio accounts for 30% of your FICO score. Keeping the amount of outstanding debt low with regard to your maximum allotted credit limit is a sign of a healthy credit utilization.

10. Monitor your credit regularly: Regularly monitoring your credit will allow you to catch any potential errors or fraud, and help you stay on top of your credit score.

By following these steps, you can improve your credit score and secure your financial future. A good credit score can help you get better interest rates on loans, lower insurance premiums, and more favorable terms on credit cards.