By Vernita Dorsey | WSFS Bank
Building a solid credit score can go a long way toward achieving your financial goals, but it can get a bit confusing when it comes to establishing and improving your score.
According to a recent WSFS Bank study, 66% of Millennial and Gen Zers said they know how to improve their credit score, but building good credit was a goal that 36% of respondents felt was out of reach.
Your credit can impact you in a number of ways, and you’ll want to try to achieve a good (around 700) or excellent (above 800) score before major financial moves like applying for a loan or mortgage if possible.
Here are a few ways you can look to improve your score.
Pay Down High Interest Loans
It takes time to build your credit, and the credit cards and loans you qualify early in your financial journey are likely to come with higher interest rates as a result.
Your payment history is one of the key factors that impacts your credit score, so wherever possible, you’ll want to ensure you’re paying off any debt in full each cycle. On time payments can help improve your score and will also help you avoid incurring interest charges on any debt that rolls over.
If you find yourself with multiple lines of credit, focus on paying off the accounts with the highest interest rates first, as those will cost you the most in the long run if you allow the debt to grow.