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There are plenty of reasons to build a strong credit score: It might help you rent an apartment, get a lower interest rate on a car loan or mortgage, or even get a job. It also might help you find the one. Alongside other values and habits, how people handle borrowed money has become one more piece of the compatibility puzzle. According to Money.com, it’s increasingly common for users of dating apps like Tinder and Hinge to post a screenshot of the three-digit score on their profile so potential partners can gauge how responsible they are. Of course, revealing a high credit score could come off as arrogant or condescending to some people, experts told Money.com, but there’s no doubt it can be attractive too. One dater told Fortune she got 17 dates in 30 days after adding her score of 811, which is classified as “exceptional.” Another had 224 matches after posting her credit score. She marveled at how great a conversation starter it was. So what? A strong credit score sets you up for success in more ways than one. And yet many people don’t know where they stand at all — or how to build or repair their score. Whether it’s for love or money, take charge of your financial health by maintaining good credit habits. Here are the some of the most important ones:• Always make your credit card and other loan payments on time. Your payment track record is the single biggest influence on your credit score. Setting up automatic payments or reminders can help ensure you’re paying on time. If you don’t have the money, reach out to the lender before your payment is due. They might give you a temporary reprieve or reduce your payment.
• Avoid carrying credit card balances from month to month. If at all possible, only charge what you can afford to repay in full each month. Otherwise, interest will accrue on the remaining balance. The interest compounds over time, meaning you pay interest on the interest that has been added. This increases the total amount you have to pay back and can make it harder to pay off your debt.
• Don’t max out your credit limit. Charging as much as you can on your credit cards signals to lenders that you could be overextended and, in turn, may be more likely to default. Generally, the lower your balance relative to your limit, the better — unless it’s $0. One common rule of thumb is to avoid using more than 30% of the total credit available to you.
• Go slow with new applications. Only apply for a credit card or loan when you really need it, because opening multiple accounts too quickly can be a red flag for lenders. (If you’re thinking about getting a new store credit card to get a big discount off your purchase, read this first.)
• Check your credit reports for errors and monitor your credit score. Whether it’s an account that’s not yours or a mistake in your payment history, errors on your credit reports could negatively affect your score. The three national bureaus that keep the reports — Equifax, TransUnion and Experian — offer free access up to once a week at AnnualCreditReport.com. And there are many free ways to monitor your score, including with SoFi. If you suspect a mistake, report it to the bureaus right away.
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A Bad Credit Score May Turn Off Potential Partners (Bankrate) Score, the Dating App for People with Good to Excellent Credit, Quietly Shuts Down (TechCrunch) The Secrets to Your Credit Score — in Your Grocery Cart? (SoFi)Please understand that this information provided is general in nature and shouldn’t be construed as a recommendation or solicitation of any products offered by SoFi’s affiliates and subsidiaries. In addition, this information is by no means meant to provide investment or financial advice, nor is it intended to serve as the basis for any investment decision or recommendation to buy or sell any asset. Keep in mind that investing involves risk, and past performance of an asset never guarantees future results or returns. It’s important for investors to consider their specific financial needs, goals, and risk profile before making an investment decision.
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