It’s surprising how much a late payment can damage a credit report. But, over time, there are ways you can improve your credit. While there is no magic solution for credit repair, below are a few best practices that can help:

• Pay bills on time. On-time payments are reported to the credit bureaus and can improve your credit.

 

• Keep balances low. It’s important to have low credit utilization. In other words, do not max out your credit cards. Try to keep usage at 30% or less of the total available credit limit. We recommend paying off your balance in full each month.

 

• Don’t have too many loans. Some loans are needed to have a credit score, but having too many loans can damage your score. If your credit needs help and you do not have an active loan, you may consider a savings secured loan. You’ll secure a loan on a savings account and as you make on-time payments, we’ll report on-time payments to the credit bureaus.

 

• Avoid too many inquiries. While this isn’t a major factor, applying for numerous accounts in a short time can lower your score.

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It’s important to note that your credit score is not the only factor in the loan decision-making process.