Finance Tip: How To Improve Your Credit Score

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For more than 150 years, Kennebec Savings Bank has offered finance tips to individuals, nonprofit organizations, and municipalities to educate them on current trends when it comes to financing. 

Our goal is to provide valuable advice on setting and achieving financial goals, protecting your financial security, and expanding your financial education.

Whether you are just starting your journey towards financial independence or looking to improve your current financial situation, our tips and resources are here to help you navigate the complex world of finance. 

How To Improve Your Credit Score

How is your credit score looking these days? Whether you have excellent credit or are working towards improving it, I have some tips that can help you boost your credit profile. As the President and CEO of Kennebec Savings Bank, I understand the importance of having a strong credit score and the impact it can have on your financial well-being.

Stay on top of your bills. One of the first steps you can take to improve your credit profile is to pay your bills on time. Late payments can have a negative impact on your credit score, so it is crucial to make timely payments to all of your creditors. The moment you start paying on time, your credit will begin to improve.

Keep your credit card balance low. It is recommended to only utilize about 30% of your available credit at any given time. By keeping your credit card balance low, you can show creditors that you are responsible with your credit usage.

Regularly review your credit report. It is important to review your credit report regularly. Errors on your credit report can negatively affect your credit score, so make it a habit to check your report for inaccuracies. If you find any errors, dispute them with the credit bureaus to ensure your credit report accurately reflects your financial behavior.

Diversify your credit mix. Having a variety of credit accounts, such as credit cards, mortgages, and auto loans, can positively impact your credit score. Lenders like to see that you can manage different types of credit responsibly. Just make sure to only take on credit that you can comfortably manage to avoid falling into debt.

Improving your credit score can open up a world of financial opportunities for you. It can save you money in the form of better insurance and loan rates, as well as provide you with more financial stability. By taking the first step today to improving your credit score, you can set yourself up for future financial success.

At Kennebec Savings Bank, we’re here to support you on your journey to a stronger credit profile. Our credit score applications make it easy to track your progress and offer personalized tips tailored to your unique financial situation. With these powerful tools at your fingertips, you can confidently manage your credit and take proactive steps towards a brighter financial future. Thank you for being a part of the Kennebec Savings Bank community and remember – a strong credit score is within your reach.

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Written By: Andrew Silsby, President & CEO | July 1st, 2024