10 Tips to Improve your Credit
There are several actions you can take to help improve your credit score. The first step is to check your credit report. Ordering your credit report is simple, and it can give you insight as to the accounts and information that may have a negative effect on your credit.
1. Pay bills on time, and pay at least the minimum amount due.
2. Contact your creditors immediately if you miss a payment, and work out a payment plan before they report you to the credit bureaus.
3. Do not close credit card accounts in good standing. Individuals with no history of credit tend to be seen as a higher risk than others who have a record of managing debt responsibly.
4. Avoid maxing out your credit cards. It's better to charge less on two cards with room to spare. Typically you should be at 30% of your credit card limits. If your credit card has a limit of $10,000 your balance should be no more than $3,000.
5. Ask creditors to raise your credit limit so that you do not appear overextended. This is an excellent way to increase your score has if you are current balance on a credit card is 50% of the limit, then with a limit increase you will lower your balance ratio lower your balance ratio.
6. Do not open new accounts, because it shows an interest in acquiring new debt, which can lower your score.
7. Aim for a rich mix of credit, with revolving credit (credit cards) and installment debt (car loan, student loan). According to a study someone with a home mortgage may have a higher score than someone with no home mortgage.
8. If you suspect your creditor is not reporting positive information to the bureaus, contact the creditors or the bureaus directly to set the record straight.
9. Correct errors on your credit reports.
10. Find out the key factors that are dragging down your score so you can fix them.
To Your Success,
