Each year since the pandemic started, credit scores have climbed higher and higher. According to Experian’s latest Consumer Credit Review, the average score soared to 714 in 2021.
Depending on where you live, your score might even be higher than the average. Michiganders, for example, now boast an average of 719 after climbing 5 points year-over-year. Despite these gains, Michigan isn’t even in the top 10 states with the highest scores.
FICO, the most popular scoring model in use today, caps scores at 850, so Michigan’s average is far from perfect. In fact, just 2 percent of consumers earn this VIP number.
Are you feeling competitive? If you want to go from average to perfect, start here. Whether you live in Michigan or not, these tips can help you improve your score.
While some people use their credit as if it’s cash, this technique might pose too great a temptation for others.
After all, your line of credit limit is more than the cash you normally carry in your wallet. With thousands available any time you go out, you could buy more than you should.
If you want a squeaky-clean score, you have to eliminate any chance you overspend. So, reconsider how your line of credit fits into your finances. The average line of credit online in Michigan is an emergency backup when you’re overwhelmed by an emergency expense—not a way to purchase everyday items.
Payment history has a tremendous impact on your score, so you never want to miss a due date. Paying bills on time will keep your account in good standing and ward off delinquencies from tanking your score.
When it comes to a line of credit, this habit could also save you money. Even the best line of credit Michigan has to offer comes with interest or finance charges that apply to the balance you carry over from one billing period to the next. You may avoid these fees if you pay your bills down to zero every month.
When paying off your balance in full isn’t possible, make sure your balance is less than 10% of your total limit. This ensures your utilization ratio doesn’t raise a red flag over your spending habits.
Review each line of your statement carefully to make sure you don’t spot anything you don’t recognize. Data breaches are increasing each year, exposing people’s personal information online. If fraudsters find your info, they have what it takes to open payday cash advances in your name.
Of course, they won’t pay these back, so they’ll eventually show up in your report and sink your score. Checking your statements and report will help you catch and resolve these issues early.
Lastly, you’ll have to be patient. A squeaky-clean score doesn’t appear overnight. It’s the result of consistent, long-term habits that show you’re responsible with money.
Building good credit isn’t the only thing that takes time. Waiting for delinquencies to fall off your record can take up to 7 years. They may lower your score until they expire, even if you follow the rest of these tips perfectly.
And there you have it — five tips for bringing an average score to a perfect one. Good luck!
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