Do you know where your credit score stands? If not, consider checking in on your credit. A higher credit score allows you to have lower interest rates, higher credit limits, and more buying power. If you’re looking to make a positive impact on your credit score, check out these five simple tips:

Review your credit report. You are entitled to one free credit report each year without impacting your credit score. Review the report closely and dispute any errors that you find.

Pay your bills on time. Paying your bills when they are due is one of the biggest contributors to your overall credit score, so be sure you prioritize paying them on time, every time.

Diversify your accounts. Having diverse lines of credit—mortgage, auto loans, and credit cards—counts towards 10% of your credit score. As long as you make on-time payments, adding another type of credit account to the mix will help your score.

Create a plan to pay down debt. Moving your debt around won’t improve your score. Your best plan of action is to create a realistic plan to pay down your credit card debt.

Increase your credit limit. Improve your credit utilization ratio by asking for a credit limit increase. By raising your credit limit, you can help improve your credit utilization, as long as your balance doesn’t increase in tandem.

Though your credit score won’t rise overnight, these tips will help you improve your score over time, giving you more financial freedom to do the things you love.

Academy Mortgage does not provide credit repair or credit counseling services.

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