5 Smart Ways to Improve Your Credit

stock-vector-credit-score-gauge-285646958When you go to apply for  your dream job or buy a house or a car, it helps to have great credit.  Here are a few tips to keep your credit in good shape.

  1.  Keep your balances low.  If they’re high, pay them down.
  2. Pay off small card balances, then use one or two cards for everything.
  3. Don’t get rid of old debt and good accounts.  They help show a solid repayment history.
  4. Pay your bills on time.  A large number of late bills can impact your credit score.
  5. Review your credit report, and communicate any problems you see to the three major credit bureaus, Experian, TransUnion and Equifax.


The cost of living has increased over the past decade, while income growth has increased modestly, causing many people to turn to credit cards to make up the difference.  As a result, credit card balances are getting higher.  More than 35% of Americans carry credit card debt month to month, up from 2015; and 14% roll over a balance of $2,500 or more on their credit cards each month, compared to 11% in 2015.  Barely half o Americans have enough cash saved to cover their credit card debt.  The average household is paying more than $6,658 in interest each year.

While some debts, like mortgages or student loans, are considered”good” debts because they are investments, credit card debt is seen as a problem for many consumers.  The high interest rates of credit cards may cause consumers to become buried in debt; however, it is possible to pay down and eliminate credit card debt over time.


Credit card debt is easy to accumulate but often hard to pay off.  If you carry outstanding balances on two or more credit cards, the rollover formula can help you take charge of your debt and pay it credit cardall off.  Here’s how it works:

  • Make a larger payment on the card with the highest interest rate and pay the minimum on the rest.
  • Once this card is paid off, apply the amount of its payment to the minimum amount you were paying on the card with the second highest interest rate.
  • When the second card is paid off, add that amount to the payment of the third card etc until you have paid off all your credit cards.

I hope these tips help you improve your credit and pay off your credit cards.  A good credit score is the only way to be able to secure a mortgage to buy a home.  Protect your credit as much as you can so you will always have a good credit score.

Remember it is always toasty in Naples and you deserve your piece of Naples sunshine and an excellent credit score!

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