{"id":1465,"date":"2021-07-26T16:33:20","date_gmt":"2021-07-26T20:33:20","guid":{"rendered":"https:\/\/www.skypointfcu.com\/wph\/workarea\/?p=1465"},"modified":"2022-06-15T11:50:23","modified_gmt":"2022-06-15T15:50:23","slug":"a-simple-recipe-for-managing-your-credit-score","status":"publish","type":"post","link":"https:\/\/www.skypointfcu.com\/wph\/workarea\/blog\/a-simple-recipe-for-managing-your-credit-score\/","title":{"rendered":"A Simple \u2018Recipe\u2019 for Managing Your Credit Score"},"content":{"rendered":"\n<p>The way your credit score works can seem mysterious, with several factors intertwining in complex ways.<\/p>\n\n\n\n<p>But following a simple recipe can help you build and maintain a good credit score:<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>Pay everything on time.<\/li><li>Use less than 30% of your available credit.<\/li><li>Keep an eye on everything else.<\/li><\/ul>\n\n\n\n<p>This formula focuses your energy on the two biggest&nbsp;<a href=\"https:\/\/www.nerdwallet.com\/blog\/finance\/what-makes-up-credit-score\/?utm_campaign=ct_prod&amp;utm_source=syndication&amp;utm_medium=wire&amp;utm_term=jsaenzmcefcu-org&amp;utm_content=656991\">factors that influence your score<\/a>:&nbsp;payment history and credit utilization (how much of your limits you use). Those two&nbsp;things account for the majority of your credit score, so managing them closely pays off.<\/p>\n\n\n\n<p>The rest \u2014 such as the types of credit you have, how often you apply for credit and the loan balances you carry \u2014 not only have less impact, they can be harder to influence.<\/p>\n\n\n\n<p>Let\u2019s break it down:<\/p>\n\n\n\n<p><strong>Pay everything on time<\/strong><\/p>\n\n\n\n<p>This is the big one \u2014 paying all your bills (not just credit cards) on time every month is crucial for a good credit score.<\/p>\n\n\n\n<p>Both FICO and VantageScore, the two major credit scoring companies, put the most importance on timely payments. A payment that is 30 or more days late can damage your score immediately,&nbsp;<a href=\"https:\/\/www.nerdwallet.com\/blog\/finance\/late-bill-payment-reported\/?utm_campaign=ct_prod&amp;utm_source=syndication&amp;utm_medium=wire&amp;utm_term=jsaenzmcefcu-org&amp;utm_content=656991\">causing it to drop by as much as 100 points<\/a>. You may also be socked with a late fee by your lender or credit card issuer.<\/p>\n\n\n\n<p>Simple tactics can help you pay on time and avoid credit score damage. Set up automatic payments on your bills. Or, if you\u2019re not a fan of automatic payments or you\u2019re worried about overdrawing your account, set a reminder to pay, says Elaina Johannessen, program director at LSS Financial Counseling, a Minnesota nonprofit.<\/p>\n\n\n\n<p>Setting a reminder several days before your due date gives you time to transfer funds to your creditors.<\/p>\n\n\n\n<p><strong>Use less than 30% of your available credit<\/strong><\/p>\n\n\n\n<p>The second-biggest factor influencing your score is&nbsp;<a href=\"https:\/\/www.nerdwallet.com\/blog\/finance\/credit-utilization-improving-winning\/?utm_campaign=ct_prod&amp;utm_source=syndication&amp;utm_medium=wire&amp;utm_term=jsaenzmcefcu-org&amp;utm_content=656991\">how much of your available credit you\u2019re using.<\/a>This mainly applies to credit cards.<\/p>\n\n\n\n<p>Credit usage matters for each card you have and for all of your cards together. To keep things simple, don\u2019t use more than 30% of your credit limit on any card. That will take care of the overall credit usage, too.<\/p>\n\n\n\n<p>While 30% is a good rule of thumb, the lower your spending on each card, the better it is for your score. Ideally, you want to keep it less than 10%.<\/p>\n\n\n\n<p>You can take several approaches to keep credit usage low: If you have to make a big purchase, spread it out over multiple cards. If your card issuers let you set alerts, ask to be notified if you\u2019re approaching the 30% mark so you can switch to another card or make a payment. And if you can afford to, pay your balance off in small chunks during your billing cycle instead of waiting for the due date \u2014 that keeps your credit utilization consistently low instead of letting it build to a peak.<\/p>\n\n\n\n<p><strong>Keep an eye on everything else<\/strong><\/p>\n\n\n\n<p>Once you have the big two covered, be aware of the other scoring factors, but don\u2019t focus on actively managing them. Time and experience with different types of credit will automatically benefit your score.<\/p>\n\n\n\n<p>Here\u2019s what else influences your score:<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li><strong>Types of credit accounts:<\/strong>It\u2019s good to have a mix of installment loans and credit cards. Simply open new credit as needed for your financial goals, and over time you\u2019ll develop a mix.<\/li><li><strong>Average age of your accounts:<\/strong>Your score benefits from having accounts showing a long record of responsible use. Keep cards open unless there\u2019s a good reason to close one, like a high annual fee.<\/li><li><strong>Recent credit applications:<\/strong>Aim to space out applications for credit cards by about six months, because seeking a lot of credit at once is a red flag. The exception: Mortgage, student loan and car loan applications clustered within a two-week window count as only one credit check, because it\u2019s clear you\u2019re rate-shopping.<\/li><li><strong>Total balances and debt:<\/strong>As long as you\u2019re not stacking up too much debt for your income, just let time take care of this one. A record of steadily paying down balances will benefit your score.<\/li><\/ul>\n\n\n\n<p>It\u2019s wise to check your credit reports periodically for errors and dispute any you find, Johannessen says. That\u2019s because your credit scores come from that data.<\/p>\n\n\n\n<p>\u201cFICO scores only consider information found in a credit report,\u201d says Tommy Lee, principal scientist at FICO. The same holds true with its competitor, VantageScore.<\/p>\n\n\n\n<p>You\u2019re entitled to a&nbsp;<a href=\"https:\/\/www.nerdwallet.com\/blog\/finance\/how-to-use-annualcreditreport-com\/?utm_campaign=ct_prod&amp;utm_source=syndication&amp;utm_medium=wire&amp;utm_term=jsaenzmcefcu-org&amp;utm_content=656991\">free annual copy of your credit report<\/a>&nbsp;from each of the three bureaus: Experian, Equifax and TransUnion.<\/p>\n\n\n\n<p>Also make a habit of&nbsp;checking your credit score&nbsp;regularly, because looking at your own score does no harm and can alert you to problems. Bonus: It also lets you see your progress as you follow this credit scoring recipe.<\/p>\n\n\n\n<p><strong>More From NerdWallet<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\"><li><a href=\"https:\/\/www.nerdwallet.com\/blog\/finance\/credit-score-ranges-and-how-to-improve\/?utm_campaign=ct_prod&amp;utm_source=syndication&amp;utm_medium=wire&amp;utm_term=jsaenzmcefcu-org&amp;utm_content=656991\">Credit Score Ranges: How Do You Compare?<\/a><\/li><li><a href=\"https:\/\/www.nerdwallet.com\/blog\/finance\/why-did-my-credit-score-drop\/?utm_campaign=ct_prod&amp;utm_source=syndication&amp;utm_medium=wire&amp;utm_term=jsaenzmcefcu-org&amp;utm_content=656991\">Why Did My Credit Score Drop?<\/a><\/li><li><a href=\"https:\/\/www.nerdwallet.com\/blog\/finance\/how-to-build-credit\/?utm_campaign=ct_prod&amp;utm_source=syndication&amp;utm_medium=wire&amp;utm_term=jsaenzmcefcu-org&amp;utm_content=656991\">How to Build Credit<\/a><\/li><\/ul>\n\n\n\n<p>Amrita Jayakumar is a writer at NerdWallet. Email: ajayakumar@nerdwallet.com. Twitter: @ajbombay.<\/p>\n\n\n\n<p>The article A Simple \u2018Recipe\u2019 for Managing Your Credit Score originally appeared on NerdWallet.<\/p>\n","protected":false},"excerpt":{"rendered":"The way your credit score works can seem mysterious, with several factors intertwining in complex ways. But following a simple recipe can help you build and maintain a good credit score: Pay everything on time.Use less than 30% of your available credit.Keep an eye on everything else. This formula focuses your energy on the two [&hellip;]","protected":false},"author":5,"featured_media":2792,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_lmt_disableupdate":"no","_lmt_disable":"","attr_excerpt":["Following a simple recipe can help you build and maintain a good credit score:\r\n-Pay everything on time. \r\n-Use less than 30% of your available credit.\r\n-Keep an eye on everything else.\r\n"],"footnotes":""},"categories":[3,6],"tags":[20],"class_list":["post-1465","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-personal-finance","category-quick-tips","tag-savings"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v24.9 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>A Simple \u2018Recipe\u2019 for Managing Your Credit Score - SkyPoint Federal Credit Union<\/title>\n<meta name=\"robots\" content=\"noindex, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"A Simple \u2018Recipe\u2019 for Managing Your Credit Score - SkyPoint Federal Credit Union\" \/>\n<meta property=\"og:description\" content=\"The way your credit score works can seem mysterious, with several factors intertwining in complex ways. But following a simple recipe can help you build and maintain a good credit score: Pay everything on time.Use less than 30% of your available credit.Keep an eye on everything else. This formula focuses your energy on the two [&hellip;]\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.skypointfcu.com\/blog\/a-simple-recipe-for-managing-your-credit-score\/\" \/>\n<meta property=\"og:site_name\" content=\"SkyPoint Federal Credit Union\" \/>\n<meta property=\"article:published_time\" content=\"2021-07-26T20:33:20+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2022-06-15T15:50:23+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.skypointfcu.com\/wp-content\/uploads\/2021\/07\/blog-promo_ladymonitoring.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"600\" \/>\n\t<meta property=\"og:image:height\" content=\"400\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Krystina Francis\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Krystina Francis\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"4 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.skypointfcu.com\/blog\/a-simple-recipe-for-managing-your-credit-score\/\",\"url\":\"https:\/\/www.skypointfcu.com\/blog\/a-simple-recipe-for-managing-your-credit-score\/\",\"name\":\"A Simple \u2018Recipe\u2019 for Managing Your Credit Score - SkyPoint Federal Credit Union\",\"isPartOf\":{\"@id\":\"https:\/\/www.skypointfcu.com\/wph\/workarea\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/www.skypointfcu.com\/blog\/a-simple-recipe-for-managing-your-credit-score\/#primaryimage\"},\"image\":{\"@id\":\"https:\/\/www.skypointfcu.com\/blog\/a-simple-recipe-for-managing-your-credit-score\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/www.skypointfcu.com\/wph\/workarea\/wp-content\/uploads\/2021\/07\/blog-promo_ladymonitoring.jpg\",\"datePublished\":\"2021-07-26T20:33:20+00:00\",\"dateModified\":\"2022-06-15T15:50:23+00:00\",\"author\":{\"@id\":\"https:\/\/www.skypointfcu.com\/wph\/workarea\/#\/schema\/person\/5d6fca5b15a6195ecc4d2b57899013ad\"},\"breadcrumb\":{\"@id\":\"https:\/\/www.skypointfcu.com\/blog\/a-simple-recipe-for-managing-your-credit-score\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/www.skypointfcu.com\/blog\/a-simple-recipe-for-managing-your-credit-score\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.skypointfcu.com\/blog\/a-simple-recipe-for-managing-your-credit-score\/#primaryimage\",\"url\":\"https:\/\/www.skypointfcu.com\/wph\/workarea\/wp-content\/uploads\/2021\/07\/blog-promo_ladymonitoring.jpg\",\"contentUrl\":\"https:\/\/www.skypointfcu.com\/wph\/workarea\/wp-content\/uploads\/2021\/07\/blog-promo_ladymonitoring.jpg\",\"width\":600,\"height\":400},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/www.skypointfcu.com\/blog\/a-simple-recipe-for-managing-your-credit-score\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/www.skypointfcu.com\/wph\/workarea\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"A Simple \u2018Recipe\u2019 for Managing Your Credit Score\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/www.skypointfcu.com\/wph\/workarea\/#website\",\"url\":\"https:\/\/www.skypointfcu.com\/wph\/workarea\/\",\"name\":\"SkyPoint Federal Credit Union\",\"description\":\"Just another WordPress site\",\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/www.skypointfcu.com\/wph\/workarea\/?s={search_term_string}\"},\"query-input\":{\"@type\":\"PropertyValueSpecification\",\"valueRequired\":true,\"valueName\":\"search_term_string\"}}],\"inLanguage\":\"en-US\"},{\"@type\":\"Person\",\"@id\":\"https:\/\/www.skypointfcu.com\/wph\/workarea\/#\/schema\/person\/5d6fca5b15a6195ecc4d2b57899013ad\",\"name\":\"Krystina Francis\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.skypointfcu.com\/wph\/workarea\/#\/schema\/person\/image\/\",\"url\":\"https:\/\/secure.gravatar.com\/avatar\/1073552808e416fb5d7067ec7d21d297be736e5fab62d1a313e57f96812715bc?s=96&d=mm&r=g\",\"contentUrl\":\"https:\/\/secure.gravatar.com\/avatar\/1073552808e416fb5d7067ec7d21d297be736e5fab62d1a313e57f96812715bc?s=96&d=mm&r=g\",\"caption\":\"Krystina Francis\"},\"url\":\"https:\/\/www.skypointfcu.com\/wph\/workarea\/blog\/author\/8f001bc0-ae21-be2b-4621-dd6ee9d56e5f\/\"}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"A Simple \u2018Recipe\u2019 for Managing Your Credit Score - SkyPoint Federal Credit Union","robots":{"index":"noindex","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"og_locale":"en_US","og_type":"article","og_title":"A Simple \u2018Recipe\u2019 for Managing Your Credit Score - SkyPoint Federal Credit Union","og_description":"The way your credit score works can seem mysterious, with several factors intertwining in complex ways. But following a simple recipe can help you build and maintain a good credit score: Pay everything on time.Use less than 30% of your available credit.Keep an eye on everything else. This formula focuses your energy on the two [&hellip;]","og_url":"https:\/\/www.skypointfcu.com\/blog\/a-simple-recipe-for-managing-your-credit-score\/","og_site_name":"SkyPoint Federal Credit Union","article_published_time":"2021-07-26T20:33:20+00:00","article_modified_time":"2022-06-15T15:50:23+00:00","og_image":[{"width":600,"height":400,"url":"https:\/\/www.skypointfcu.com\/wp-content\/uploads\/2021\/07\/blog-promo_ladymonitoring.jpg","type":"image\/jpeg"}],"author":"Krystina Francis","twitter_card":"summary_large_image","twitter_misc":{"Written by":"Krystina Francis","Est. reading time":"4 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"WebPage","@id":"https:\/\/www.skypointfcu.com\/blog\/a-simple-recipe-for-managing-your-credit-score\/","url":"https:\/\/www.skypointfcu.com\/blog\/a-simple-recipe-for-managing-your-credit-score\/","name":"A Simple \u2018Recipe\u2019 for Managing Your Credit Score - SkyPoint Federal Credit Union","isPartOf":{"@id":"https:\/\/www.skypointfcu.com\/wph\/workarea\/#website"},"primaryImageOfPage":{"@id":"https:\/\/www.skypointfcu.com\/blog\/a-simple-recipe-for-managing-your-credit-score\/#primaryimage"},"image":{"@id":"https:\/\/www.skypointfcu.com\/blog\/a-simple-recipe-for-managing-your-credit-score\/#primaryimage"},"thumbnailUrl":"https:\/\/www.skypointfcu.com\/wph\/workarea\/wp-content\/uploads\/2021\/07\/blog-promo_ladymonitoring.jpg","datePublished":"2021-07-26T20:33:20+00:00","dateModified":"2022-06-15T15:50:23+00:00","author":{"@id":"https:\/\/www.skypointfcu.com\/wph\/workarea\/#\/schema\/person\/5d6fca5b15a6195ecc4d2b57899013ad"},"breadcrumb":{"@id":"https:\/\/www.skypointfcu.com\/blog\/a-simple-recipe-for-managing-your-credit-score\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/www.skypointfcu.com\/blog\/a-simple-recipe-for-managing-your-credit-score\/"]}]},{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.skypointfcu.com\/blog\/a-simple-recipe-for-managing-your-credit-score\/#primaryimage","url":"https:\/\/www.skypointfcu.com\/wph\/workarea\/wp-content\/uploads\/2021\/07\/blog-promo_ladymonitoring.jpg","contentUrl":"https:\/\/www.skypointfcu.com\/wph\/workarea\/wp-content\/uploads\/2021\/07\/blog-promo_ladymonitoring.jpg","width":600,"height":400},{"@type":"BreadcrumbList","@id":"https:\/\/www.skypointfcu.com\/blog\/a-simple-recipe-for-managing-your-credit-score\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/www.skypointfcu.com\/wph\/workarea\/"},{"@type":"ListItem","position":2,"name":"A Simple \u2018Recipe\u2019 for Managing Your Credit Score"}]},{"@type":"WebSite","@id":"https:\/\/www.skypointfcu.com\/wph\/workarea\/#website","url":"https:\/\/www.skypointfcu.com\/wph\/workarea\/","name":"SkyPoint Federal Credit Union","description":"Just another WordPress site","potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/www.skypointfcu.com\/wph\/workarea\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en-US"},{"@type":"Person","@id":"https:\/\/www.skypointfcu.com\/wph\/workarea\/#\/schema\/person\/5d6fca5b15a6195ecc4d2b57899013ad","name":"Krystina Francis","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.skypointfcu.com\/wph\/workarea\/#\/schema\/person\/image\/","url":"https:\/\/secure.gravatar.com\/avatar\/1073552808e416fb5d7067ec7d21d297be736e5fab62d1a313e57f96812715bc?s=96&d=mm&r=g","contentUrl":"https:\/\/secure.gravatar.com\/avatar\/1073552808e416fb5d7067ec7d21d297be736e5fab62d1a313e57f96812715bc?s=96&d=mm&r=g","caption":"Krystina Francis"},"url":"https:\/\/www.skypointfcu.com\/wph\/workarea\/blog\/author\/8f001bc0-ae21-be2b-4621-dd6ee9d56e5f\/"}]}},"modified_by":"Alexander Choque","featured_image_src":"https:\/\/www.skypointfcu.com\/wph\/workarea\/wp-content\/uploads\/2021\/07\/blog-promo_ladymonitoring.jpg","featured_image_alt":"","_links":{"self":[{"href":"https:\/\/www.skypointfcu.com\/wph\/workarea\/wp-json\/wp\/v2\/posts\/1465","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.skypointfcu.com\/wph\/workarea\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.skypointfcu.com\/wph\/workarea\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.skypointfcu.com\/wph\/workarea\/wp-json\/wp\/v2\/users\/5"}],"replies":[{"embeddable":true,"href":"https:\/\/www.skypointfcu.com\/wph\/workarea\/wp-json\/wp\/v2\/comments?post=1465"}],"version-history":[{"count":1,"href":"https:\/\/www.skypointfcu.com\/wph\/workarea\/wp-json\/wp\/v2\/posts\/1465\/revisions"}],"predecessor-version":[{"id":1467,"href":"https:\/\/www.skypointfcu.com\/wph\/workarea\/wp-json\/wp\/v2\/posts\/1465\/revisions\/1467"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.skypointfcu.com\/wph\/workarea\/wp-json\/wp\/v2\/media\/2792"}],"wp:attachment":[{"href":"https:\/\/www.skypointfcu.com\/wph\/workarea\/wp-json\/wp\/v2\/media?parent=1465"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.skypointfcu.com\/wph\/workarea\/wp-json\/wp\/v2\/categories?post=1465"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.skypointfcu.com\/wph\/workarea\/wp-json\/wp\/v2\/tags?post=1465"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}