Good credit scores may seem elusive and mysterious, but they’re a measurable system establishing financial reliability. A three-digit number ranging from 300 to 850, your credit score is a “grade” that informs potential lenders how risky it is to lend money to you.

Consequently, you should consistently work to improve and maintain your credit score.

How Is a Credit Score Determined?

Multiple factors affect your score, and each bears its independent significance:

• Payment history – 35%.
• Credit utilization – 30%.
• Length of credit history – 15%.
• Credit mix – 10%.
• New credit – 10%.

When boosting your credit score, consider each of these factors and use them to your advantage.

Why Does Your Credit Score Matter?

Many responsible, financially healthy people prefer cash over credit. They may have a lower credit score than someone who wisely manages their credit cards. While both are responsible consumers, having a good credit score carries some significant benefits: 

• The ability to qualify for a loan or credit card.
• The ability to rent an apartment or house.
• Lower interest rates on financed purchases.

Here Are 6 Tips for Boosting Your Credit Score in 2024:

1. Get a Credit Card.

For some, having a credit card carries a negative connotation. And many walk into considerable debt, which is very bad for your credit score. However, a credit card can be a helpful tool, too. While paying off a loan builds credit, you must also deal with your loan’s interest. Using a credit card to boost your credit score is a better option than taking out a loan because interest is a non-issue if you pay your balance off each month.

Make Payments on Time.

Payment history is the most critical factor to consider. After all, late payments stay on your credit history for seven years. Be diligent in paying your bills and credit cards on time. Aim to pay off your credit card balance each month, if possible.

Use Your Cards Wisely.

Keep in mind that using too much of your available credit damages your credit score. Credit utilization is the strategy of using up the “right” amount of your credit. Keep your credit charges to 30% (or less) of your available credit.

Diversify Your Credit (But Not Too Much).

Just like you want a diverse investment portfolio, having a diverse credit report can also be helpful. One to three credit cards and several loans can strengthen your score. However, since these factors account for only 10% of your score, they’re not the most important consideration. Additionally, opening a new credit card or applying for a new loan requires a hard credit check, temporarily hurting your score. So, only open a new card if it’s a necessity.

Don’t Cancel Credit Cards. 

Canceling credit cards hurts your credit score since it affects your credit utilization ratio and interrupts your credit history. There are some circumstances in which it is best to cancel a credit card, but you may want to ask your bank before proceeding.

Watch Out for Identity Theft.

All your work to boost your credit score could be for naught if you experience identity theft. Monitor your identity, credit cards, and all your accounts. You can view your credit report for free every twelve months, so be on the lookout for false information damaging your credit score. 

At the Robert Joseph Group, we combine our years of experience to provide real solutions to our clients and job seekers. By offering a targeted recruiting strategy, we match top-tier candidates to top-tier companies. Contact us today to begin!

Choose professional attire –

• Dress as you would for an onsite, in-person interview. That means proper, professional attire for your entire outfit. (Sure, the interviewer may only see from the waist up for 95% of the interview time, but you never know when you might need to stand or inadvertently show more when reaching for something.)
• Neutral, solid colors, and basic designs look best on camera and present a professional image.
• Double-check your outfit the day before your interview to ensure it is washed, pressed, and ready.
• A professional appearance will increase your confidence.

Set up a mock interview with a friend –

• Dress the part. Ask for feedback on your apparel.
• Adjust the lighting and chair position until they give you the thumbs up.
• Adjust your microphone volume and practice projecting your voice. You want to be clearly understood by the interviewer(s) without shouting.
• Prepare a list of typical questions and practice your answers.

At the Interview

Follow typical interview guidelines –

• Maintain eye contact by looking directly into the webcam
• Pay attention to your posture, but relax –you aren’t a soldier in formation. Let your confidence shine through positive body language. Smile.
• Accommodate that delay that sometimes occurs in digital connections. Wait until they finish speaking, pause briefly, and then reply.
• Ask thoughtful questions that reveal your knowledge of the company, understanding of the industry, and interest in the position.
• Express your appreciation for the opportunity to interview.
• Ask them what the next step is, when you can expect to hear back,  and if they need additional information from you.

After the Interview

Follow-up can put you at the top of the list –

• Immediately (at least on the same day), email the interviewer(s), thanking them again for the opportunity to interview.
• Include a brief statement sharing why you believe you are the right choice and what you will do for the company.
• Quote back a relevant comment that they made during the interview.
• If you have another pertinent question, that’s fine, but don’t ask something they would expect you to know.
• Big tip: Don’t skip the email follow-up, but in addition to it, send a written thank you to the interviewer(s). It may seem outdated in our digital world, but it is always well-received and is one of the best ways to ensure you stand out.

Are you looking for a new position in 2022? Contact The Robert Joseph Group. We help top accounting and finance talent connect with the position that best fits their situation, earning that coveted interview. Whether you seek a temporary or more permanent role, we offer the best in Accounting and Finance opportunities.