How to UP your Credit Score
Credit score is it's own kind of beast. Go ahead and get a open mind because while some ways to up your credit score don't make any good sense, it's just the way it works. So I am going to give you easy tips to help you.
- NO CREDIT IS WAY WORSE THEN BAD CREDIT- First things first having no debt and using cash for everything is awesome. I know crazy right you would think that would be the best credit. But it's not so get a credit card or a small bank loan and start paying it off. Credit score is more about them wanting to see that you have credit available to go and that you can make payments on time, every time. Which leads me right into another way to raise your score.
- PAY ON TIME EVERYTIME. There is nothing you can do more to raise your score then to pay early or on time every time
- MIX IT UP- using different kinds of credit some from credit union or buy a piece of furniture or appliance on installment plan.
- RAISE YOUR CREDIT LIMIT- yes I said it raise your credit limit on your credit cards. This doesn't mean to max out your credit cards to that limit. It just means to make more credit available to you.
- PAY TWICE A MONTH- make one payment just before the statement closing date and second one right before the due date. The first will likely reduce the balance that the credit bureaus see and the second makes sure you won't pay interest or late fee.
- DON'T CLOSE ANY CARDS. canceling a credit card will cause your credit to drop.
- CHECK YOUR LIMITS- make sure your reported credit limits are current vs lower than they actually are.
- NEGOTIATE- You can't deny that you stopped paying when you were unemployed or sick last year. But you can ask creditors to "erase" that debt or any account that went to collection. Write a letter offering to pay the remaining balance if the creditor will then report the account as "paid as agreed" or maybe even remove it altogether. (Note: Get the creditor to agree in writing before you make the payment) you might also be able to ask for a "good-will adjustment." if you were a pretty good customer until you became unemployed.
- DON'T OPEN SEVERAL CREDIT ACCOUNTS TOGETHER- opening several accounts in a short period of time represents greater credit risk. When the information on your credit report indicates that you have been applying for mulitiple new credit lines which can lower your score. (as oppesed to rate shopping for a single loan, which is handled differently)
Get a FREE credit report once a year at AnnualCreditReport.com So get your report and check for any errors. Mistakes happen. And remember fixing your credit report is just like the tortoise and the hare, your credit score will not jump really high fast. Slow and steady wins the race. So just keep with it and your score will go up before you know it.