Credit score

Here are Suze Orman’s top tips for boosting your credit score

Image source: Getty Images

Could his advice give your credit score a much-needed boost?


Key points

  • Many companies use credit scores to gauge your trustworthiness and dependability.
  • Raising your credit score could open doors for you and help you achieve your goals more easily.
  • You can improve your credit score by following the advice of financial guru Suze Orman.

The importance of your credit score cannot be overstated, as it is one of the most essential financial measurements of your life. Landlords, lenders, potential employers, insurers, and almost everyone else you hope to do business with look at your credit report. A good credit rating can open doors for you, while a weak one can complicate your life.

The good news is that if you’re unhappy with your current credit score, it’s not set in stone. There are ways to improve your score so you can have more loan options to choose from and find companies that want to work with you more easily.

Personal finance expert Suze Orman has suggested some tips for improving your score. Here are some of his tips.

Make all your payments on time

Above all, Orman emphasizes the importance of always paying bills on time. As she points out, this factor is the most important that credit reporting agencies use to determine your credit score. “You have no excuse not to succeed,” Orman says on his blog.

This is especially true since virtually all credit card companies allow you to set up automatic payments. If you sign up to have at least the minimum payment taken directly from your bank account each month, you won’t have to worry about forgetting a payment and seriously hurting your score because of it.

Spend less on your credit cards

The next big tip from Orman is to use your credit cards less. She suggests that you only charge for a few items each month and then pay off your entire balance.

However, while Orman is correct that keeping your credit utilization (the amount of credit used relative to the amount you have) below 30% is an important factor in improving your score, his advice in this cases could mean limiting the potential rewards you earn. If you can budget responsibly and make sure you have enough money to pay off your bills in full without paying interest, there’s no reason not to bill whatever you can and just pay off. debt immediately after getting the maximum possible rewards based on your spending.

Orman advises avoiding store cards to improve your credit score as well, both because store cards have very high interest rates and because opening a new card at the register can result in a re-inquiry into your credit report. Too many inquiries will lower your credit score. This is generally good advice, as store cards also tend to come with inferior rewards programs than other card options.

Keep an eye on your credit report

Finally, Orman recommends checking your credit report regularly. This allows you to quickly spot errors that could hurt your score so you can minimize the damage they cause. It can also help you determine how your borrowing and repayment behavior affects your credit score. It’s especially important to keep an eye on your credit report as you work to improve your score.

Normally, you can request a free copy of your credit report from each of the three major bureaus per year. However, during the pandemic, the bureaus made weekly credit reports free for everyone.

Don’t forget to pay off your debt

While these are all great tips, Orman doesn’t put much emphasis on paying off your existing debt balances in these tips, which could be crucial if your score is currently damaged by high credit utilization. . It may also be possible to increase your score by asking creditors to remove negative information.

Still, following Orman’s advice can go a long way to improving your credit history, and it’s worth heeding his advice if you’re hoping for an improvement in your score that will improve your overall financial situation.

The best credit card erases interest until 2023

If you have credit card debt, transfer it to this top balance transfer card guarantees you an introductory APR of 0% in 2023! Plus, you won’t pay any annual fees. These are just a few of the reasons why our experts consider this card a top choice to help you control your debt. Read the full The Ascent review for free and apply in just 2 minutes.