Prescriptions To Heal Your Credit Score
According to collegescholarships.org The current average student loan debt for graduates from a four-year college or university stands at $26,600. Graduate students will be faced with an even greater amount of student debt. On average, students earning a graduate degree will leave school with an average of $43,500 in accumulated college loans.
So once you have graduated and the reality of paying off your student debt becomes a reality, it is a good time to think about what your credit score looks like. If you have been busy in pursuing your Nurse Practitioner education, or if you are already practicing, now is the time to make sure your credit is healthy as well.
Your credit score is one measure of your financial health and whether you’re responsibly managing your money.
Here are a few suggestions to get you on track.
℞. Check your credit reports.
We are all entitled to a free copies of our annual credit reports from each of the credit reporting bureaus. Visit annualcreditreport.com and request your report, then review it to ensure that the information on there is accurate. If you do find an error on your report, ensure you file a dispute with the credit bureau to correct the information.
Once you’ve received your credit report and verified that the information on it is accurate, the next thing is to fix the items that have the highest negative impact on your score, such as accounts in collections, charge-offs, and late payments.
℞. Pay your bills on time.
Your payment history makes up 35% of your credit score. It is important to ensure you are paying your bills on time, such as utility bills, credit cards , installment loans, and car loans. Using an automatic payment withdrawal or your banks bill payer program help you from forgetting to make your payments on time. Recent payments have the most impact, with your credit score being most affected by the last two years. Make sure you are paying at least the minimum, more is better if it is in your budget.
℞. Keep you account balances below 30% of your credit limit, this makes up a whopping 30% of your credit score, so remain vigilant. Also keep the credit card you have had the longest. The length of your credit history accounts for 15% of your total credit score.
℞. Avoid closing credit cards after you have paid them off, this mistake may impact your score, because you are reducing the total amount of credit available to you. You do not want to remove a card with a long payment history which could bring down your score.
℞. Paying off your balance is always a smart move, but ensure that you do not let the card lay dormant and under used. Making small purchases and then paying them off immediately shows you are using your card.
Having good financial health decreases stress in your life and improves your mental and physical health!
Categories: Finances, Pay, Salary