There are a number of ways to do this. Here are the ones we consider most important:
- Our Credit Builder helps you live life while automatically building your credit history. There’s no fees, no interest, and no paycheck direct deposit required to join! It is a helpful way to build or rebuild your credit score that’s fully integrated into your One account.
- Credit Builder is an optional product for any One Customer who is interested in building their credit and who meets eligibility requirements. If you are not eligible for Credit Builder, you could be eligible for Credit Line.
- Credit Builder is currently in beta testing. To request early access, click here.
- Pay your bills (on time)! Late or missed payments can wreak havoc on your credit score. This is the simplest and most effective way to improve it.
- Don’t apply for a lot of new credit cards all at once. Every application generates what’s called a “hard inquiry,” which can have a negative affect on your score. Having too many at once can be a red flag to lenders, because it appears that in need of cash or getting ready to add a lot of debt.
- Be careful when closing old credit cards. The length of your credit history is a significant factor in calculating your credit score - some date it based on the average of all your accounts, while others look at the age of your oldest account. Closing old ones can shorten the length of credit history, affecting your credit score.
- Pay down your credit debt. Your credit utilization ratio (the amount of debt you owe compared to the amount of credit you have) is an important figure to keep in mind. Lenders typically want to see a utilization ratio of below 30% on each credit line.
- Diversify your credit mix. It’s not a major factor, but lenders typically like to see a mix of evolving credit accounts (like credit cards) and installment loans (like auto loans, student loans or mortgages).