Good credit plays a crucial role in your financial well-being and stability. It impacts everything from your ability to secure loans, to how much you pay in interest on credit cards and current or future mortgages. Building and maintaining healthy credit can seem like a daunting task, but it doesn’t have to be. By following a few simple best practices and leveraging available resources, you can take control of your credit and start making progress toward your financial goals.
Here are some tips and resources to help you stay on track with your credit, as well as a great feature we offer to help you build credit while you pay rent!
1. Regularly Check Your Credit Score
Your credit score is a reflection of your financial health. It’s important to check it regularly to monitor your progress and ensure there are no errors or fraud. Experian is one of the major credit bureaus that provides credit scores, and there are several ways to access your score for free or at a low cost.
- Experian Website: You can get a free credit report directly from Experian once a year at AnnualCreditReport.com.
- Experian App: The Experian app offers free access to your credit score with a simple sign-up. You can track changes over time, see detailed reports, and more.
- Credit Card Companies: Many credit card companies offer free credit score access as part of their services. Check with your provider to see if this is available.
2. Dispute Any Errors on Your Credit Report
Errors on your credit report can negatively affect your score. If you find any inaccuracies, take action by disputing them directly with the credit bureau. Experian and Credit Karma, for example, have an easy-to-use dispute process that allows you to resolve issues quickly. Timely corrections will ensure your score reflects your actual credit behavior.
3. Keep Your Credit Utilization Low
One of the most important factors that influence your credit score is your credit utilization rate, which is the ratio of your outstanding balances to your total available credit. Ideally, you should keep your utilization below 30%. This shows you can manage your credit responsibly. If you’re close to maxing out your credit cards, try paying down your balance or requesting a credit limit increase.
4. Pay Your Bills on Time
Payment history accounts for the largest portion of your credit score. Late payments can have a significant negative impact, so it’s important to stay on top of your due dates. Set reminders for credit card, loan, and bill payments to avoid missing a payment.
5. Build Credit with FlexPay and Rent Payments
At Timberland Partners, we want to make it easy for our residents to build their credit. That’s why we offer FlexPay, a customizable payment solution that allows you to pay your rent in installments. By paying your rent through FlexPay, your payments are reported to the credit bureaus, helping you build your credit with each on-time payment.
Building a positive rental history can be a great way to improve your credit score. Since many people don’t realize that paying rent can impact their credit, FlexPay is a fantastic tool to help you establish or strengthen your credit history without taking on more debt.
6. Avoid Unnecessary Credit Inquiries
When you apply for new credit (credit card, auto loan, home loan, store charge cards), it results in a hard inquiry on your credit report, which can slightly lower your score.
7. Stay Informed and Be Proactive
Managing your credit is an ongoing process. Keep educating yourself on how your credit score is calculated and what actions can improve it. There are plenty of free resources online to help you understand credit better. Websites like MyFICO, Credit Karma, and NerdWallet provide articles, tips, and tools to help you stay informed. Kickoff is a GREAT resource to begin building your credit score quickly – they offer low monthly costs and have gone viral for their amazing results.
Your Credit Journey Starts Today
At Timberland Partners, we’re not just providing you with a place to live—we’re here to support you as you build a stronger financial foundation. Whether you’re building your credit for the first time or trying to improve your score, the steps you take today will pay off in the future. And remember, paying your rent on time through our FlexPay program is an easy and effective way to build credit as you pay.
Written by Travis Traynor
