Ask Terry Questions HELP! I NEED TO RE-BUILD MY CREDIT RATING

HELP! I NEED TO RE-BUILD MY CREDIT RATING

By Terry Savage on January 22, 2025 | Credit/Debt

Had a good credit score but lost major credit card due to none use, which affected my credit rating. Trying to rebuild. Had a lot of medical procedures the end of 2024 and new health insurance policy for 2025 wants me to use a bank account to make automatic payments each month. Do not think payments from bank account will raise my credit rating would prefer to pay with credit card . Do you have any ideas what to do if company only allows use of a bank account for auto pay. Any suggestions would be greatly appreciated. Thanks We love your show!

Terry Says

I can understand that you want to increase your credit score — which is useful only if you are about to make a major purchase, or change homeowners or auto insurance. And using your current credit cards regularly, and paying off on time and in full will certainly bring your score up.
Note to others: It’s worth keeping that longest card shown on your credit report, because LENGTH of credit history is a key factor. That’s too late for you now.

As for the medical insurance payments, it’s entirely possible that the insurance company might only accept auto-payments directly from a bank account. Try asking them again, but there is nothing you can do if they insist. Many insurers will accept payment from a credit card, but likely too late to change your policy.

And while the regular credit card charges and payments would have helped demonstrate your good credit habits, you’ll just have to follow the advice above and be patient until your score moves higher.

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