Secret Strategy Banks Fear for Stellar Credit Scores
The Secret Strategy Banks Fear
One of the most effective strategies for boosting your credit score is credit utilization management. This involves keeping your credit card balances well below your credit limits. Experts suggest maintaining a utilization rate of 30% or lower. By doing so, you demonstrate to lenders that you can manage credit responsibly, which can significantly improve your credit score over time1.
Another component of this strategy is diversifying your credit mix. Lenders favor borrowers who can manage different types of credit, such as revolving credit (credit cards) and installment loans (mortgages or car loans). By having a varied credit profile, you can enhance your creditworthiness in the eyes of lenders2.