What can i do to make my credit score better and save more money?

Answer 1

The best way to start is by paying your credit card statements on time, and preferably the balance in full. Never default on a balance (when you just forget to pay even the minimum balance). They tell you to never spend more money than you have, that is usually a good way to stay out of trouble and avoid paying credit card interests (which adds up in time).

Always ask for a credit line increase periodically (every 6 - 12 months). This in itself is a good indicator of how your credit score is. If your credit card company doesn't hestitate to give you big credit increases, it's probably because you're on point with paying off your balance.

In summary, paying off your bills on time, and in full usually means less penalties and less interest which saves you money. Make no mistake, a 5% credit card interest may seem like a small number (most card's interests are actually higher), but 5% of $100 is $5, and 5% of $200 is $10, and it just keeps adding up if you don't pay. 5% of $200 is 10, but if you don't pay, 5% of $210 is $10.50 because the interest is gaining interest...

Answer 2

Paying off your balances on time and in full will save you interest and finance charges, using around 20% of your available credit should help improve your score.

Putting money into a FDIC-insured money market account instead of a standard savings account should give you 3 or 4% higher interest on your savings (as well as having higher liquidity).

Living frugally would save you money, but it depends on what sort of lifestyle you want.

Order ice water when at a restaurant instead of another beverage. It's calorie-free and often filtered the same as sodas.

Eating at home rather than going to a restaurant, getting take-out or fast food will generally save you money as well.

If you raise your FICO score, you can take advantage of lower interest rates (APR) and save money that way.