First Bank of the Lake: 4 Great Tips to Improve Your Credit

Good credit can be essential when trying to make any sort of big purchase, such as a house or a car. Getting approved for your mortgage or installment loan for your car can be a lot easier if your credit is not poor. Our bank at the Lake of the Ozarks is here to give you a few tips on how to improve your credit score.

4 Tips to Improve Your Credit

Tip # 1
Stay at a minimum with your credit card expenditures.
Know your credit card limits well! It can be a good rule of thumb to keep your balance at around 30 percent of your credit limit or less. You can make multiple small payments or pay the credit cards with the highest balances off first.

Tip # 2
Pay your credit card bills ON TIME.
If you can only make the minimum payment, do that, but just make sure you pay on time. You can really affect your credit score in a negative way by paying late.

Tip # 3
It's not a bad idea to have multiple types of accounts in your credit report.
For example, if you have a combination of student loans, credit cards, and a car loan, this can help your credit. Not only does it diversify the report but gives more information to look at when determining your score.

Tip # 4
Avoid closing old credit cards.
A short credit history length can affect your credit negatively. It can be tempting to close old credit cards you don't use anymore, but closing a credit card and opening a new one can shorten the length of your credit history and make it look like you have too many credit cards.

"Your credit report and credit score are two of the most vital aspects of your financial health." - Erin Lowry

Trying to Qualify for a Mortgage Loan or Car Loan ?

First Bank of the Lake has you covered. Our loan specialists are happy to meet with you and hear about your lending needs. We are a local bank and have been a Lake of the Ozarks community bank for over 30 years. When you work with a local bank, you put your money to work growing the local economy. We share a common commitment to our community with our customers. Also, when you work with a local bank, loan approvals and other key decisions are made locally by people who live in the community, we have face-to-face relationships with our customers, and we can understand local needs. Call our bank in Osage Beach at 573-348-2265 if you have any questions about how our installment loans work or would like to sit down and meet with us.

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