2) Keep revolving debt balances as close to $0 as possible.
Revolving debt is categorized as debt that has a moving balance. Credit cards, lines of credit, and home equity loans are debt instruments that allow you to increase a balance by making additional charges—they are not fixed debts. Their balances can “revolve” or change on a daily basis. 30% of your credit score is based on the balances of your revolving debt. A great way to increase your credit score is to pay down the revolving debt balances and keep them as close to $0 as possible.
3) Pay off past due debts.
If you have any past due debts, get them paid. This goes for collections, judgments, or open accounts that have recently missed payments. As mentioned before, a large percentage of your credit score is based on timely payment, but what cannot be ignored is reconciling debts that were not paid on time.
Are you interested in creating a budget to help you accomplish some of these steps? Schedule an appointment with Ryan, a certified financial coach. He would be happy to help!