Being focused, steady and humble can raise your score.

A common topic among those new to the employment market and those needing to make a change in their personal financial life is the credit score. In the former, the topic is building a credit score from scratch; the latter, rebuilding damaged or non-existent credit. Baseball season is in full swing, so why not use baseball as a metaphor for improving one’s credit score?

Be a singles hitter. All-time great, and famous singles hitter, Pete Rose said, “Singles hitters drive Fords. Home Run hitters drive Cadillacs.” If you’re building or rebuilding your credit, you need to be that guy driving the Ford. Or Chevy, if you’re a GM guy or gal. It may not be sexy, but if you’re in it for the long haul and you’ve got goals for yourself and your team (or family), it’s the way to be.

Credit bureaus reward longevity and a consistent ability to make on-time payments. The Fair Isaac Corporation is the home plate umpire of this game. Fair Isaac creates the FICO Score, a well-respected statistical formula for predicting an individual’s credit risk. For the bureaus to put together an accurate predictive model of your risk, it takes time. They need a set of data to work with. It can’t happen overnight. That’s where you come in.

Step up to the plate. With a plan in mind, ‘hitting for average’ will bump your credit score in the right direction. Some advice from a singles hitter:

Be patient. In baseball, this means waiting for your pitch. In building or rebuilding your credit, it means acknowledging that it takes time. Payment history is one important part of the score.

Be purposeful. Make the time at the plate count. Find the right vehicles for building or rebuilding your credit and focus in on them. The mix of accounts and how they are utilized will be one component of your score. Pay off debt rather than moving it around.

Be consistent. Don’t go for the home run even though it can look appealing. A single can drive the guy home from second base. Similarly, a record of consecutive on-time payments will factor in much more positively than one big lump-sum payment.

Be strategic. For a singles hitter, this might entail developing a swing on both sides of the plate. For a credit builder/rebuilder, a strategic mix of credit (home and car) for instance, makes sense.

Be in control. If you need to, step away from the plate. On the same note, when it comes to building or rebuilding personal credit, manage it. Don’t go overboard finding opportunities to take on credit to build a score. Look for a few good pitches. Hit those. Demonstrate that you have a ‘singles hitter’ mindset.  

Of course there are factors that will make rebuilding your credit a more challenging endeavor. Bankruptcy, frequent delinquencies and other items of public record can build in difficulty, but if you’re in a common situation, these rules of the game might be helpful. We hope so!

Want to know more about products and services that offer credit and the opportunity to build your credit score? Contact a representative at Central Bank.