Build and Boost Your Credit (While Paying Down Debt)

How to Build Credit

Your life stage and financial goals can guide you to a better credit score:

Gen Z

Pay student loan bills on time. Student loans add to your credit mix, the length of your credit history, and payment history.

Millennials & Gen X

Fix credit report errors. You may incur bad marks or errors on your credit report over time. Your score may increase after filing a dispute to eliminate erroneous information.

Baby Boomers & Retirees

Maintain credit cards and limit new debts. Keep your credit cards active, but don’t carry a balance. Pay attention to your credit limit. Avoid co-signing new loans with family members.

Learn more about how to build credit at any age.

Protect Yourself from Fraud

These methods will help safeguard your identity and credit score:

• Contactless payment: Methods like Apple Pay hide credit card numbers when you make a purchase.
• Regular account review: Review billing statements frequently to look for fraudulent charges.
• Dedicated credit cards: Use one card for online purchases for easier account tracking.
• Safeguarding personal information: Don't give your financial information over the phone unless you initiate the call.
• Avoid Hacking: Only use home Wi-Fi or password-protected networks for online purchases.

Read more in our guide to fighting credit card fraud.

Don’t have a credit card? You still have credit-building options.

• Personal loans
• Secured credit cards
• Lending circles
• Report utility payments

Learn more about how to build credit without a credit card.

Pay down debt

Too much debt can drag down your credit score.

Paying down debt can take time, but it is possible. Finding the right strategy can help.

3 Repayment Strategies:

• Start small: Gain momentum by paying down the smallest debt first while making minimum payments on all other balances. Then start again with the next smallest debt.
• Limit long-term interest: Pay down the debt with the highest interest rate and make minimum payments on all other balances. Once the highest-interest debt is gone, start the process again.
• Consolidate debt: Use a low-interest personal loan to pay off higher-interest balances and replace them with a single monthly payment.

Learn more about strategies to climb your way out of debt.

What if those strategies aren’t enough? Can you negotiate debt?

Maybe. Determining factors:

• Your current credit score
• Your account status
• Your lender’s settlement terms

Learn more about negotiating credit card debt.

Resources

• Tips for building credit
• Dealing with debt
• Learn to read your credit card statement
• Debt repayment worksheets

Looking for additional credit boosting tips? Find them on the OppU blog.