Everyone wants action quickly!  One quick way to increase your credit score is to change your payoff date.  It is common that people carry a balance all month, and then pay most, if not all of the balance at the end of the month.  This is a great way to build points, and it is super convenient.

What you need to understand is that when it comes to credit scoring, credit utilization is a factor It is 30% of your credit score. This means that if you carry high credit card balances, your credit scores will be much lower.

This means if you have a credit card with a $2,000-$3,000 limit, and you pay your rent, car insurance, phone bill, gas, and a few utilities on it, you may be hitting 60% to 100% of your credit limit.

That means when a mortgage company pulls your credit – you could be falling 30 to 100 points, even if you pay your card off in full every month!

So what can you do about it?

Call your credit card companies and find out what day they report your account information to the credit bureaus.  Every creditor has a day of the month when they report your account information to the credit bureaus.  Pay your credit cards of fully the day before they report.  If you need to use your credit cards be sure to wait until the day after your account information reports to the credit bureaus. Then your credit utilization will always report low balances! This can mean the difference between credit scores that hover around 670 or credit scores that are quickly making their way to 800 and beyond.

These are the kinds of simple tips you can learn from the 4 Step Credit classes.  This tip could mean an instant 30 points, and that could save you 10’s of thousands on a mortgage.  It could lower your car loan to 3% or even 0% depending on your situation.

Credit management is not difficult, it just isn’t obvious.  Consider a lifetime credit membership with us and you can start saving thousands on your next loan!