7 Tips To Increase Your Credit Score
Having a high credit score can mean the difference of thousands
of dollars of saved interest expense compared to others with a
lower score. For example, if you improve credit score results
from the credit bureaus, just a few points that increase your
credit score can make huge difference in the interest rate you
will pay for a home purchase. It pays to increase your credit
score!
The most commonly used credit scores available to lenders are
FICO scores, which is a scoring method created by Fair, Isaac &
Co…FICO!
These scores are provided to lenders by the three major credit
bureaus: Equifax, Experian and TransUnion. Before we get into
some tips how to improve credit scores, it pays to review the
major areas that determine your FICO score.
1. Payment history on credit and retail store cards, loans and
mortgages. 2. Amount that you owe. Credit agencies look at how
many accounts have balances and the proportion of that balance
to the credit line. 3. How long is your credit history? The
longer the better. 4. New credit accounts. Applying for a bunch
of credit cards all at once can hurt your score. 5. Different
credit types, such as mortgages, retail loans, credit cards and
installment loans. 6. How many late payments do you have?
Now, with the playing field laid out, let’s work to boost your
credit score! Some methods that boost your credit score take
time, months or years, and others areas to improve credit score
can be made with a phone call right now! That said, here are the
7 tips to raise your credit score!
7 tips to improve credit scores
1. Pay your bills on time. Your payment history is a major
factor (35% of your FICO score) in determining your credit
score. If you pay your bills late, or had an account referred to
collections, your credit score will take a major hit.
2. Sign up for online banking and make sure your regular
recurring bills are paid automatically. This way you will not
forget a payment that will wind up reducing your credit score.
3. Increase your credit limit. Another large factor is the
amount of your debt in relation to your credit limit. If you
have a card with a $10,000 credit limit and your balance is
$9,000, this will not help to improve your score. To make the
debt/credit limit ratio look better, you can try to call your
credit card company and request an increase in your credit
limit. Don’t use the extra credit though! That defeats the whole
purpose and puts you further in debt!
4. Don’t apply for many cards at once. This will not improve
your credit score because this is a characteristic of high
credit risk groups.
5. Don’t ever close an open credit card account. If you pay off
a credit card down to a zero balance, leave it open. Remember
that a positive factor for your credit score is how much
available credit you have at your disposal when compared to your
credit balance, in addition to the length of your credit history.
6. Apply for loans within a two-week period. Every time you
request a loan and the lender pulls your credit report, it can
hurt your score. It is part of the FICO formula that reasons
“this person is trying to apply for credit and loans and
possibly be trying to live way beyond their means!” If you keep
the loan process within a two-week period, all of the credit
report lookups are bundled together as one single request!
7. Check for errors on your credit report. Examine your credit
report for errors and contact the credit reporting agencies to
fix any errors on your credit report.
If you take action and follow these tips, you will be able to
give your credit score and immediate boost and gradually
increase it even more as time passes. The major keys are to pay
your bills on time and reduce your debt amounts when compared to
your credit limit. This has a twofold benefit of improving your
credit score and reducing your debt.
Copyright © 2005 FinancialTipsForYou.co
Greg Quincy
http://www.articlesbase.com/finance-articles/7-tips-to-increase-your-credit-score-3369.html
Tips ways to increase credit score, without getting a new credit card or loan?
Pay all your bill on time. More credit cards means less credit (Some people don't know that)
References :
Thats the only way to get credit is pay off your debts timely and consistently. If you don't havea car, credit card, or something else you're paying off then you will just not have credit. Not good or bad just none. Because thats how it is when you're young and starting off with no credit. One good thing to do is take out a loan for like 500 dollars or whatever, then put the money in savings (do not spend!!) and just pay it back monthly. The same exact money. Because once you pay off a debt thats when you get good points on your credit score. And then people look at your score and see you've payed off your bills timely and etc etc.
References :
Call the FTC's opt out hotline 1 888 567-8688. This allows you to opt out from receiving pre approvals for credit cards. I've heard the credit repositories look positively at this, and can increase your score 1-30 points.
Another fast way to increase your score is to lower your balance to limit ratios on your revolving accounts (credit cards). If you don't have the money to pay them down, call and see if the account holder will increase your limit. Increasing your limit, or lowering your balance will both decrease your balance to limit ratio.
Those are some quick things you can do off the top of my head.
References :
http://www.tibbshomes.blogspot.com
Increase your income, lower your debt and increase your available credit, pay off debt or consolidate onto one loan, research "the 5 c's of credit" (search on yahoo or msn for details) to determine how they base your credit score.
References :
acct supervisor w credit card services