Final answer:
To improve her credit score, Barb should pay all bills on time, reduce her credit card balances, limit new credit applications, and check her credit report for errors. Paying more than the minimum monthly payment on credit cards can also help to reduce interest costs and improve her score.
Step-by-step explanation:
Barb can take several effective steps to improve her credit score before purchasing a house. Firstly, making timely payments is essential, so paying all bills on time is key to building a good credit history. Additionally, maintaining low balances on credit cards is crucial, so reducing credit card balances can help to improve her credit utilization ratio, a significant factor in credit scoring. Barb should also limit new credit applications because each application can result in a hard inquiry that temporarily lowers the credit score. Finally, she should regularly check her credit report for errors, and dispute any inaccuracies she may find, as these can negatively impact her credit score without her knowledge.
To improve her credit score, Barb can take the following steps:Pay bills on time: Making timely payments on all her bills can positively impact her credit score. Late payments can have a negative effect on credit scores.Reduce credit card balances: Lowering the amount of credit card debt Barb carries can improve her credit score. High credit card balances can negatively impact credit scores.Limit new credit applications: Applying for multiple new lines of credit in a short period can lower credit scores. Barb should avoid applying for unnecessary creditCheck credit report for errors: Barb should regularly review her credit report for any inaccuracies or errors that may be negatively affecting her credit score. She can dispute any errors and have them corrected.Understanding the role of interest rates and how they apply to credit card balances is also important. If Barb carries a balance on her credit cards, she'll incur charges calculated by multiplying her balance by the interest rate. By paying more than the minimum monthly payment, she can reduce interest costs and improve her credit score over time. Building an emergency fund and using credit responsibly are also key aspects of maintaining a healthy credit score.