When it comes to your credit score, everyone seems to be an expert. Your mother, father, uncle and even your best friend all have some idea on how to build your credit score. We’ve decided to reveal the truth on how to build your credit score!

Checking Your Credit Score Will Lower It: NOPE! 

Your score is not affected when you check it yourself or when a lender checks it to pre-qualify you for a loan or credit offer. A hard check – when your credit score is checked to qualify you for a loan – will affect your credit score. It will only drop your score a couple of points and the effect is only temporary. 

Your Credit Score is On Your Credit Report: NOPE!

Your credit report only contains your credit history, which means, your credit score is only based on the information on your credit report. Many personal finance and banking institutions will offer your credit score for free. This is good to know if you’re interested in making any investments that require a specific credit score before applying. You can also receive your credit score weekly on annualcreditreport.com. 

Carrying a Small Balance on Your Card Helps Your Credit Score: NOPE! 

Paying your balance off every month is the most effective way to increase your credit score. If you cannot pay off your loans or credit cards all at once, try making additional small payments prior to the due date. This can also help increase your credit score. 

How to Build Your Credit Score.

  1. Pay on time every time.
  2. Use credit lightly – use only 30% of your credit limit on all cards held by you at any given time.
  3. Pay off balances in full every month. 
  4. Keep your oldest accounts open. 

Moseman Law Can Help!

Now that you know the truth about building your credit score, you can start building your credit back today! If you do find yourself in a financial crunch and are considering filing for bankruptcy, contact Moseman Law for assistance. There is no shame in using the laws established to help you get out of debt and have a fresh start at your financial health! Moseman Law is a full-service legal firm located in Mentor, Ohio, serving all of Northeast Ohio and providing personalized legal solutions to our clients.