Overview
Your credit score often plays a major role in determining your loan eligibility and the interest rate you receive. While Upstart does not provide credit counseling or financial advice, here are some general steps that may help you improve your credit score.
Steps to Improve Your Credit Score
1. Make On-Time Payments
Your payment history is the largest factor affecting your credit score. Missing even one payment can negatively impact your score. Setting up automatic payments or payment reminders can help you stay on track.
2. Reduce Your Credit Utilization
Your credit utilization ratio is the amount of credit you're using compared to your total available credit. Lower utilization generally supports a healthier credit score. If you're carrying high balances on credit cards or other revolving accounts, paying them down may have a positive impact on your credit profile.
3. Check Your Credit Report for Errors
Mistakes on your credit report can lower your score. You can request a free credit report from each of the three major credit bureaus once per year at AnnualCreditReport.com. Many companies offer services to monitor your credit report for free. If you find inaccuracies, you can dispute them directly with the credit bureau.
4. Avoid Opening Too Many New Accounts
Each time you apply for new credit, a hard inquiry is placed on your credit report, which can slightly lower your score. Experts recommend limiting new credit applications before applying for a loan.
5. Keep Old Credit Accounts Open
The length of your credit history also impacts your score. Even if you don’t use an old credit card, keeping it open can help improve your credit age and overall credit score.
Where to Learn More About Your Credit Score
For personalized guidance on improving your credit, consider reaching out to a financial advisor or a credit reporting agency:
Experian
📞 Phone: 1-888-397-3742
🌐 Website: www.experian.com
TransUnion
📞 Phone: 1-800-916-8800
🌐 Website: www.transunion.com
Equifax
📞 Phone: 1-888-548-7878
🌐 Website: www.equifax.com
📌 Related Articles:
- How Loan Applications Impact Your Credit Score
- Understanding Loan Terms: APR, Principal, and Interest Explained
- Managing Your Credit Report: How to Access It, Correct Mistakes, and Prevent Fraud