How Physicians Can Improve Their Credit Scores
By Michael Jerkins, MD, M. Ed., President and Co-founder of Panacea Financial
Even with high earning potential, many physicians face credit challenges. Student loan debt, limited income during residency, and the financial demands of medical training can make it hard to maintain a strong credit profile.
Why Credit Scores Matter
Credit scores range from 300 to 850 and signal financial reliability to lenders. A high score can unlock better rates on mortgages, practice loans, and other financial opportunities.
FICO scores consider five factors:
- Payment history (35%)
- Amounts owed (30%)
- Length of credit history (15%)
- Credit mix (10%)
- New credit (10%)
Tips for Improving Your Credit Score
- Automate Payments: Set up automatic payments for loans, credit cards, and utilities to avoid missed payments.
- Manage Student Loans: Explore income-driven repayment plans or refinancing but weigh the trade-offs carefully.
- Control Credit Card Usage: Keep balances below 30% of your limits; spread balances across cards if needed.
- Preserve Credit History: Keep older accounts open and active with small, periodic purchases.
- Build Credit Early: Being an authorized user on a trusted relative’s account can help establish credit history.
- Limit Hard Inquiries: Consolidate loan or credit applications within a short period to minimize score impact.
- Refinance Debt: Replace high-interest credit card debt with a personal loan to improve credit mix and utilization.
If you’re ready to conquer your toxic credit card debt, Panacea Financial has PRN Personal Loans that can help you reach that goal with no cosigner requirements, no prepayment penalties, and 24/7 customer service. Apply today and take advantage of AMS-exclusive discounts here.
Panacea Financial is a division of Primis Bank. Member FDIC.
Michael is the President and Co-founder of Panacea Financial and is also a practicing physician in Little Rock, AR. After earning his BBA in Economics he deferred his medical school acceptance to teach middle school science in the Phoenix, AZ area while also earning his Masters in Education from Arizona State University. He then completed medical school at the University of Tennessee Health Science Center before finishing his residency at University of Cincinnati Medical Center and Cincinnati Children’s Hospital. With a faculty position and board certifications in both Internal Medicine and Pediatrics, Michael is able to treat patients of all ages and teach medical trainees in both inpatient and outpatient settings.