When you’ve worked to have a good credit score, you’ve put yourself in a favorable situation. But if you’ve already built up good credit, why not push your credit score to excellent?
By doing so, you’ll have access to even better interest and insurance rates as well as credit cards with lower fees and better rewards. Potential lenders, landlords and employers will also look at you in a more positive light when you go from the good credit score range to excellent.
First, tackle debt
The first step you should take is to work on paying down your debt. To really impact your good credit score, try to decrease your debts as quickly as possible. Focus first on your debts with the highest interest rates. As a result, you will pay less in interest over time and can use those funds to pay off more of your other debts. Using this method, called a debt avalanche, you can tackle your debts until they’re all paid off.
Once you demolish the last of your debt, avoid incurring more in the future as that can have a huge effect on your good credit moving up to excellent.
Watch your credit reports
Catching errors on your report can help to boost your good credit to excellent within a month or two of correction.
Diversify your types of credit
Lastly, try to diversify your credit. If you have only credit cards for people with good credit, branch out to other types of credit — like loans — you might need. Showing you’re responsible by being able to pay off a variety of debt will help improve your credit score. However, don’t get overzealous and apply for too much credit at once. Having too many hard inquiries for new credit on your report over a short period of time can drop your score. It’s a delicate balance and you should address the other two steps first.
This story was updated Sept. 30, 2016.