Easy Steps To Improve Your Credit Score

Posted on July 20, 2016 by

Easy Steps To Improve Your Credit Score Thursday July 16 , 2015 A credit score factors in years of payment behaviours but you can still take immediate steps to improve your credit. Keep credit card balances low. A major factor in your credit score is how much revolving credit you have vs. the amount you are actually using. The optimum percentage is 30% or lower. Boost your credit by keeping balances as low as possible. Even if you pay your credit card balances in full every month you can have a higher ratio than you anticipated. One way to address this is by making multiple payments as you go rather than at the end of your billing cycle. Don’t have a credit card? Some issuers offer a prepaid credit card. Eventually if you make all of your payments on time, and keep your balances low the issuer may provide you with a full card and refund your deposit. Good old debt should be left on your report. If you pay off your car or home leave it on your report. Some people believe that old debt is bad but this isn’t true. Good debt is debt that you have paid as agreed, on time, in full. It shows a history that lenders can expect from you. This is opposite with bad old debt. Have it removed from your credit report as quickly as possible. If you have bills in collections, don’t avoid collectors. What you may not know is that you can actually negotiate a settlement with the collector often for a fraction of what is actually owed. Once you have done this be sure to request a release letter to have it removed from your credit report. Limit the frequency and quantity of credit applications. Each time you apply for credit your score takes a little dip. The exception is with car financing, mortgages, and student loans. While you may shop around for the best financing options the formula for scoring allows for the fact that you may make several applications because you will only take out one loan. Always pay your bills on time One of the biggest factors in a good credit score is predictable consistent payments. If you’re late making payments this will have a negative effect on your score. Do NOT create risk Disruptions in your regular payment behaviors indicate risk to lenders. Things such as paying less charging more, and late payments can create red flags. Taking out cash advances or using your credit card at places that could indicate financial problems may not necessarily affect your score but they do make issuers nervous. Ultimately be responsible with credit. Don’t obsess with your score but be diligent about making the right decisions.