Reaching a Better Credit Score

Welcome back to our series on managing your credit score.

If you missed the first two entries, you can review them here:

Credit cards can feel like almost a
get out of jail free card sometimes.

Whether your checking accounts are low, or if it’d be more responsible to make a certain purchase with your line of credit, there’s always a way to justify swiping your card. But exercising the utmost caution here is your best bet for keeping your score in check.

Credit Card Debt

As we stated in a previous entry, a good rule to follow is keeping your balance below thirty percent. This directly correlates to how your debt is reflected on your report. While it may take some doing, it’s more than worth it in the end.

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Planning Ahead for Your Credit

This next tip for reaching a better credit score is the simplest of all. Use your calendar and add relevant payment dates where applicable. Then set reminders as frequently as necessary. While it may seem like a forgone conclusion, this is actually a solid technique for keeping your payments in check.

It’s easy for payments to escape you when you don’t have them bookmarked like this. We know that this is likely one of a list of obligations you’re facing. Life’s responsibilities tend to pile up rather quickly, and these reminders will prove to be more valuable than you may expect.

How Autopay Helps

Another great tool is the auto pay function. This automated feature allows you to set payments to auto debit from your account. This is a great safety net for those times when things get away from you.

That said, use this feature with caution.

 In the event that you don’t have enough in your account to cover the charge, you can trigger an overdraft. This can cause you to not only miss the payment, but also incur further fees from your bank. Here’s where using you calendar can help a great deal. Once you get your alert, check your account to make sure there’s enough, and if not, plan accordingly.

Banking with Newton Federal

Have any banking questions or needs? Newton Federal is here to help. Reach out to us via our contact page, as our lenders are on standby to give you the help you need. We look forward to hearing from you.