Building Your Credit with Rebecca Keeter, VP of Mortgage Sales with Harris N.A.

Your credit score affects everything from receiving the best interest rates, getting approved for loans and even getting hired for a new job. So what should you do if it needs some work? According to Rebecca Keeter, CRA District Relationship Manager, Vice President Mortgage Sales with Harris N.A., a better score is only a few steps away. "You can improve your credit by identifying what's harming it and taking steps to rebuild it," she says.

Responsibly using the credit you have is the best way to achieve a better credit score. In fact, those who have attained a perfect or near-perfect credit score routinely use this strategy. They regularly use credit -- but never more than they can afford to pay off.

Common credit pitfalls

Keeter explains how you can dig yourself out from common pitfalls and, in turn, increase your credit score.

The problem: You've paid late or missed a few payments.

The fix: Make a point of paying on time, every time.

It sounds basic, but one of the easiest things you can do to boost your credit score is to pay on time, every time. Just as you might have a standing tennis date with friends, also try scheduling payments for bills that are due around the same time each month. An automatic bill pay service, such as Harris Bill Payment and Presentment®, makes it easy.

The problem: You've maxed out one or more credit cards.

The fix: Pay down what you owe and avoid creating more debt.

Ideally, you want to keep your debt-to-credit ratio to less than 35 percent. Any more than that and financial organizations take it as a sign you may be overextended financially.

If you are inching close to 35 percent utilization, or are already past it, avoid creating new debt and stop using your credit cards. Next, begin paying down your debt. If you can, try paying more than the minimum payment each month -- doing so will help you pay down your balances faster and may save you thousands of dollars in interest over time. As your balances begin to shrink, your credit score should start slowly increasing.

The problem: You only use credit cards.

The fix: Consider using other types of credit.

Many people are surprised to learn that the types of credit used can affect your credit score. Only using credit cards, even if you pay them off every month, won't help your score. However, adding an installment or mortgage loan to the mix can help increase it. Paying back one of these loans over time shows that you can responsibly handle credit and have the ability to pay back larger sums of money.

Knowledge is power

Perhaps the most important step you can take toward improving your credit is regularly reviewing your credit report. If you need help, stop by your local Harris branch. A banker can help you evaluate your credit history, debts owed and current income to develop a plan of action for improving your credit. "We provide basic steps people can take to start improving their credit so they can get on a better financial path," says Keeter.

To learn more about credit scores, please call 1-800-546-6101 or visit HelpingMakeMoneyMakeSense.com.

Harris® is a trade name used by Harris N.A. and its affiliates. Member FDIC

Category:

Education

Tags:

• credit
• building your credit
• credit report
• credit score
• rebecca keeter
• harris bank
• helping make money make sense
• my credit report
• my credit score
• credit report scores
• credit debt
• credit help