1 Step to Better Credit
Change Just One Thing and See Your Score Go Up Within a Year
In an experiment, I changed just one thing to see how it would impact my credit score. If you have an Orchard Bank secured credit card, then you have access to a credit tracking website called MyCreditKeeper. This site lets you look at and track your scores and credit report as often as you want for just under $10 a month. Not only are you able to check your credit anytime you want, but the site has helpful hints for improving credit.
One tip seemed fairly easy: spend no more than about 30% of your credit card limit. Finding that out is as simple as multiplying your limit by 30%, For example, with a limit of $300, you should spend no more than $90 a month in charges (don't forget to include finance charges). If you depend on your secured card that has a low limit, this can take a bit of choreography in adjusting your spending habits. A good suggestion is to put 1-3 small steady charges on the secured card, and either use your bank debit card or pay with cash for everything else.
My experiment involved doing just that. In March of 2010, my scores were in the fair range, with the average score being 660. Almost a year later, my scores have jumped up an average of 726. So it turned out to be really simple after all to get those credit scores up. Looking forward to seeing what's going to happen in the next year.
To recap, here are some steps to better credit within a year:
1. Spend no more than 30% of your credit limit
2. Scale back on your spending on a secured credit card if you have one.
3. Check with your credit card company to find out if they have a credit monitoring program that will allow you keep track of your scores and report at your convenience.
4. Commit to keeping a diary of what's going on with your credit (give it about a year at first).
5. Remember to pay in full and early if you can; paying a little more than what you owe can give you more wiggle room by giving you a credit on your bill. Set up email and/or SMS to remind you to pay.
6. If the charges are the same every month, set up automatic bill payment. Keep monitoring your bill before it's due to make sure no strange charges are popping up.
Sources: MyCreditKeeper
Published by L. Purcell
Freelance photographer, writer and general computer geek. View profile
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