Fast Credit Repair
by WBUR

Increase Your Credit Score And Improve Your Life

Have you been turned down for a loan, mortgage or credit card?  Has your credit score bottomed out due to missed payments or loan defaults? Do you know how you to increase your credit score?

A low credit score can lead to a lower standard of living, as you are denied credit for business, cars, or homes or extended credit with high interest rates. Maintaining a good credit score is especially important today.

Almost all creditors use scores as a way of judging an applicant’s creditworthiness   The creditors are taking risk when they give someone access to their money so they need a way to be reasonably sure you’ll pay them back.  The credit score, or FICO score, is a popular tool that allows them to quickly make reliable decisions about a credit applicant.

Here are just some of the ways to increase your credit score:

1. Avoid applying for credit too frequently. Every time you apply for credit, a lender makes an inquiry. These inquiries are recorded in your credit record and if you have too many, your score will be lowered.

2. Always pay your credit cards on time. THIS IS THE MOST IMPORTANT.  Credit card companies always report late payments and this will lead to a poor payment history on your record.  Because you are judged to be a risk, your score will be lowered.

3. Avoid high outstanding balances on your credit card.  Keep your cards paid down and don’t max them out.  Carrying near the maximum credit is always a poor sign.  You should be reducing your debt over time.  By not doing so, you are viewed as more irresponsible with your credit.  Because of this, your score will be lower.

4. If possible, catch up on missed payments. It is never too late to pay the bill.  Late payments, while still negative, don’t look as bad as a default or a lawsuit.

5. Don’t close unused accounts. This is a mistake that many people make once they get their debt paid off.  Doing this can actually hurt your credit score.  Let me explain why.  Assume you have four credit cards that have a total maximum credit limit of ,000 spread among them.  You have one card paid off completely but still have a total credit card debt of ,000.  Right now, you are utilizing 30% of your credit.  Now you cancel that one card, which did have a 00 credit limit.  Now your maximum credit limit is 00 spread among three cards but you still have a 00 debt.  So now you’re using 38% of your available credit.  This can negatively influence your credit score.  Just cut the cards up if that keeps you from using them.  Don’t cancel the account.

6. On the other hand, don’t think that opening additional accounts with the idea of increasing your maximum credit available will work.  If you take on additional credit too soon, it can lower your score.

7. Having no credit history is also deemed a credit risk by many lenders.  They simply don’t have enough information to judge your creditworthiness.  If you fall in this category, then obtaining one or two credit cards will be beneficial to you.  Just make a few spends a year and pay off the balance.

Credit scores not only influence whether or not you’ll be given a loan, but also influence the rates you will be offered if approved. A low score means you’ll be paying a higher interest rate on the borrowed money.  This can cost you thousands of dollars, depending on the type and amount of loan received.  Some employment agencies and employers also check the credit scores of applicants before making a hiring decision.

As you can see, increasing your credit score can improve the quality of your life.  Fortunately, there are simple ways to raise your score over time.  You just have to be more responsible with your credit and pay off your debts in a timely manner.

Fast Credit Repair