As an indication of the capacity to repay a loan, a credit score impacts many decisions in life. Along with affecting your ability to buy a home or a vehicle, a poor credit score can also influence how expensive your auto insurance coverage is. Fortunately, there are many steps you can take to improve your rating.

How to Improve Your Credit Score

1. Check Credit Reports for Accuracy

While it may seem unlikely, errors within credit reports are quite common. Look over your reports from all three major bureaus — Equifax, Experian, and TransUnion — to ensure they’re free of mistakes. Should you find one, dispute it with the credit bureau responsible for issuing the report. One report might contain an inaccuracy the others do not.

2. Get Late Payments Up to Date

Whether it’s your phone bills, insurance coverage costs, or utilities, late payments negatively impact your credit score. Even if you close an account, you’re still responsible for any money owed, and the longer you put off paying, the more likely it is penalties will be assessed. Locate late or missed payments and make it a priority to take care of them. In most cases, only payments later than 30 days will show up on your credit report, so act quickly. 

3. Pay Off Credit-Card Debt

Your score is based on several factors, including credit utilization. It’s beneficial to have a credit card, but only if you pay more than the minimum monthly charge. Keep balances low at all times and strive to pay off your credit card bill in full each month. This is also a great way to reduce interest.

Bob Shropshire Bail Bonds offers bonds and insurance coverage to residents of Cincinnati, OH, including affordable car insurance coverage and SR-22 certificates. Learn more about their many services by calling (513) 721-3915 today. You can also explore auto coverage options on their website.