Key takeaways about “credit luck”:
- Luck has nothing to do with better credit. No amount of wishing on a shamrock will boost your score or erase financial missteps.
- Knowledge, discipline, and the right game plan is the real formula for improving your “credit luck.”
- This article breaks down how you can enjoy better “credit luck,” both on your own and with CredEvolv in your corner if you need us.
- Even with a solid strategy, improving your credit takes time. Financial progress happens when you stay the course, not happen across a lucky break.
Ah, St. Patrick’s Day. The annual holiday that celebrates all things lucky – four-leaf clovers, leprechauns, and that ever-elusive pot of gold at the end of the rainbow.
But luck has nothing to do with better credit. No amount of wishing on a shamrock will boost your score or erase financial missteps. What’s the real formula for improving your “credit luck?” Knowledge, discipline, and the right game plan.
At CredEvolv, we know that improving your credit isn’t about channeling the luck of the Irish. It’s about taking smart, strategic steps to reach your financial goals.
So, if you’re feeling down on your luck when it comes to credit, don’t despair! We’ve got the formula to make you smile like a pair of Irish eyes!
Let’s break down how you can enjoy better “credit luck,” both on your own and with CredEvolv in your corner if you need us.
If you’ve missed payments in the past, start fresh by setting up reminders, autopay, or budgeting to ensure every bill is paid on time.
Step 1: Find out where you stand with your credit
If you were searching for a pot of gold or some other type of treasure, you wouldn’t start without a map. The same goes for your credit journey. Before making any changes, you need to know your current situation. Start by checking your credit report.
You can access your report for free once a year from each of the three major credit bureaus (Experian, Equifax, and TransUnion). Review it carefully, because mistakes happen, and they can drag down your score. If you spot any errors, dispute them right away to clear your path toward better “credit luck.”
Step 2: Pay bills on time – every time
Think of your payment history as the lucky charm of your credit score. It makes up 35% of your FICO score. That’s why late payments can wreak so much havoc on your financial health.
“Even one missed payment can reduce a credit score by 100 points or more if a consumer is more than 90 days delinquent,” finance editor and possessor of an 800+ credit core Adam West recently wrote on BadCredit.org. “That’s why consumers need to know that making a minimum payment, while not ideal and unlikely to dent the principal of a loan, is better than not making any payment at all.”
If you’ve missed payments in the past, start fresh by setting up reminders, autopay, or budgeting to ensure every bill is paid on time. If you’re struggling to stay on top of payments, CredEvolv can help. The certified, nonprofit credit counselors on our platform can work with you to create a personalized plan that keeps you on track. No dressing in green required!
Step 3: Keep your credit utilization in check
Think of your credit score as your personal stash of gold. Every time you max out your credit cards, a leprechaun sneaks away with some of it. Keeping your credit utilization ratio below 30% is key to maintaining a strong score.
For example, if you have a credit limit of $10,000, aim to keep your balance below $3,000. Better yet, if you can pay your balance in full each month, you’ll be even more golden (but if you can’t, refer back to Step 2 and be sure to at least make the minimum payment).
If your balances are already high, don’t panic. Start chipping away at them by making more than the minimum payment each month (if possible). If you need guidance on tackling debt, CredEvolv’s nonprofit credit counselor partners can create a “credit luck” strategy that works for you.
Step 4: Focus on the “mix” of your credit accounts
A rainbow has many colors. A strong credit profile has several credit types. Lenders like to see a healthy mix of credit, such as installment loans (auto loans or mortgages) and revolving credit (credit cards).
That doesn’t mean you should go out and open new accounts just for variety’s sake! But if you’re looking to level up your score, a credit-building loan or a secured credit card can be a good place to start. Just make sure you manage them responsibly!
Step 5: Don’t open too many new accounts at once
Applying for multiple lines of credit in a short period of time can make lenders apprehensive. Why? Because it signals potential financial instability.
Plus, each hard inquiry on your credit report can lower your score slightly. Instead of chasing new credit accounts like they’re those proverbial pots of gold, be selective and strategic about when and why you apply.
Step 6: Work with a certified credit counselor for better “credit luck”
If you’re feeling lost in the financial fog, don’t wait for “credit luck” to improve on its own. Seek expert guidance. At CredEvolv, we connect people just like you with certified, nonprofit credit counselors who can help you map out a plan to improve your credit.
Whether you need help tackling debt, budgeting, or setting financial goals, we’re here to guide you. We’re not here to string you along or lead you astray like those for-profit credit repair companies can do.
Bonus tip: Patience and persistence pay off
Even with a solid strategy, improving your “credit luck” takes time. Financial progress happens when you stay the course, not happen across a lucky break.
Stay consistent and make responsible financial choices. Before you know it, your credit score will be shining bright!
Start your path to better “credit luck” today!
When it comes to credit, you can create your own luck by making smart financial decisions and seeking the right support. At CredEvolv, we make “credit luck” possible by connecting you with certified, nonprofit credit counselors who specialize in credit improvement and know exactly how to help.
Whether it’s St. Patrick’s Day or any other day, don’t leave your credit up to chance. Take action, take control, and let CredEvolv help you strike gold! Enroll today!