Top 10 Tips on Raising Your Credit Score
Credit scores are determined by payment history, time of established credit, account balances, recent inquiries, and debt-to-income ratio. Following these tips will not produce dramatic results overnight, but you may be able to see results in weeks.
Tips On Raising Your Credit Score #1: Check Credit Reports
Once a year you are allowed a free credit report from the following agencies - Experian, TransUnion, and Equifax. Up to 90% of consumers find errors within their reports. Make note of these errors and go to Tip #2.
Tips On Raising Your Credit Score #2: Dispute
You are able to dispute these errors online or in writing. The company you are disputing has 30 days to prove you owe that money. You can also dispute items you are not sure about. My husband knew he owed money to one credit card company, but didn't believe it was for the amount that was shown on his credit report. Sure enough, after he contested the amount, the entire charge was taken off all three reporting agencies. I don't see this happening again, but it was a $3000 charge.
Tips On Raising Your Credit Score #3: Timely Payments
This is a no brainer. The longer it takes you to make a payment, the lower your score will fall. Some agencies will report consumers if they are 30 days late, but all agencies will report you if you're more than 60 days late.
Tips On Raising Your Credit Score #4: Pay Down Your Balances
The more available credit you have (depending on the circumstances - too many cards, etc,), the higher your score will go.
Tips On Raising Your Credit Score #5: Don't Close Old Accounts
Most people think the opposite. But again, the more available credit you have compared to debt falls in your favor. This proves you can handle having credit.
Tips On Raising Your Credit Score #6: History Counts
If you must close old accounts, keep the one you have had the longest open. This way you won't come off as a new borrower.
Tips On Raising Your Credit Score #7: No Retail Store Cards
They are not considered good credit to have by credit grantors
Tips On Raising Your Credit Score #8: Do Your Rate Shopping at the Same Time
Believe it or not, if you shop around for lenders or apply for something that checks your credit, be sure to do it all within a short time period. This way, it will show as one single search instead of many. Too many searches will lower your score.
Tips On Raising Your Credit Score #9: Have a Checking and Savings Account
This will show stability in your financial affairs.
Tips On Raising Your Credit Score #10: Don't Open More Cards
This is a red flag to grantors. Why would one person need so many credit cards? It could also cause you to go into debt much faster, thinking of the additional cards as a crutch.
Credit used to be given to only the very rich because they "were good for it." Today many families want unnecessary items but are unable to pay for them, so that is when they use their credit card. Remember these tips, and financial freedom will soon follow.
Published by E. Wright
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- Following these tips will not produce dramatic results overnight, but you may be able to see results in weeks.
- Today many families want unnecessary items but are unable to pay for them, so that is when they use their credit card.
- Your credit score can make or break you.
13 Comments
Post a CommentSophia, it really depends (doesn't everything?) From what I had been told, if my retail cards had been paid on time, don't close them. Retail cards are the easiest to get, so grantors look down upon them for that reason. Just don't open any new retail accounts - some people open 15 (retail)a year!
Guess I should get rid of all the number 7's....or will that interfere with number 5? Anyone?
Great practical information in an easy to follow report.
Venus, that's a good question. I can only assume if the person is getting the new card just to transfer the balances, it would be wise. However, the problem is that most people are going to run up that third card as well. Without the third card, there's no way to become more entangled in debt unless you're cahrging up the credit cards you are paying down.
Wonderful tips that everyone can put to use! Thanks for sharing them with us!
I've heard of people getting new cards so that they can take advantage of 0% interest rate deals for balance transfers. What do you do in those cases if you already have more than 2 credit cards? Is it likely to look negative on your credit report or will it ultimately help you because you are reducing your credit balance (assuming the person doesn't charge in the mean time)?
Amber, I am glad you stopped by one of my articles. I somehow missed you in the reciprocal friends group, but I had just read your post when I saw your comments. I have added you to my favorites.
Thanks, Amber. I'm going to add you to my favorites so I can check back now and then. I am always interested in how to improve my credit score. I learned some things I didn't know before when I read this article. Keep 'em comin' girl.
Thanks for the feedback. Every little bit helps!
These are helpful, they recently had alot of these on 20/20 very interesting what helps and doesnt help.