How to Raise My Credit Score

By: Want To Know It

A common question many people have is how to raise their credit scores. Well, this post will give you to best ways to give your credit rating a boost.

Improve Your Credit Score

• Pay all your bills on time! It sound obvious, but it is very important. Pay bills late and your score will decrease (even if it is in the ‘grace period’).
• Show you can manage different credit sources. If you have a car loan, credit card and mortgage and your are paying all of them off on time, your credit rating will improve.
• Even if you pay off all the debts in an account, don’t close it down! When you have an account with no negative reports, it looks good on the credit report.
• Don’t apply for any new credit. It is better to just ask for increased limits on your credit cards than apply for a new one.
• Don’t pay off debts all at once, do it gradually. This shows you can manage your debts well. If you pay it all off at once, you aren’t ‘managing’ it effectively. Remember, a credit score is just a bunch of statistics!
• Get a copy of your credit report and scan for any errors. If you find any, get them resolved. You will need proof.
• Spread the balance of a maxed out credit card to other credit cards. It’s much better to have all your credit cards at 20-30% of maximum that to have some at near maximum at others being unused (or rarely used).
• Have someone else (who has a very good credit rating) add you to their credit account. Make sure you have a very trusting relationship with this person. Also ensure that you pay off all your bills on time, as you hurt their credit rating when you don’t!
• Don’t file for bankruptcy or foreclosure unless you have absolutely no other option. Bankruptcy stays on your record for years. The number of years depends on where you live and what type of bankruptcy you file for.

Other Finance Posts:

How Does a Reverse Mortgage Work

Prepaid Credit Cards for Teenagers

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