Raising Your Credit Score A Step At A Time
March 13, 2011 6:00 am
Raising Your Credit Score A Step At A Time A good credit score is essential to making any large financial transaction such as buying a house or new vehicle. While there are many bad habits which can contribute to a low score, there are a few small steps one can take to mend his or her score for the better. Step 1 – Obtain a copy of your credit report from all three major bureaus. You’ll want to periodically review your report for errors, as these may drastically impact your credit. Step 2 – Make your payments on time. Delinquent and late payments have a drastic effect on your score. Check your most recently closed accounts all your open accounts regularly for upcoming payment due dates. If possible, make more than just the minimum payment. Step 3 – Try and keep low balances. Consider using your debit card or paying in cash rather than using your credit cards. Maxing out your cards, or maintaining a balance close to your max may send the wrong message and affect your score for the worse. Even if you pay your bills each month and on time, a large balance can appear precarious to credit lenders. Step 4 – Open new accounts with care. If your credit history is short and your score needs improvement, avoid opening a large number of accounts in a short period of time. If your credit history is already established, avoid opening new accounts just to expand your line of credit. Step 5 – Use an older card. If you have cards that you no longer use, bring them back into the picture if, and only if you can handle them responsibly. In general, the more credit history you have, the better. Older cards will stop updating your reports if not utilized. This includes lower limit store credit and gas cards. Step 6 – Pay off any Installment Loans. Installment loans such as those taken out for Mortgage, Auto or Educational purposes should not be neglected. While these do not typically impact your score dramatically the way credit cards do, they are nonetheless important factors contributing to your final score. Did you know that checking your own report doesn’t affect your credit score. See your Credit Score for at CreditReportViewer.com. It’s Free and available in seconds. Article from articlesbase.com Raise a credit score by making sure everything on a credit report is accurate, improving debt-to-income ratio and avoiding scams that claim to raise credit scores instantly. Correct any inaccurate content on a credit report by using a registered dispute letter with instructions from acertified financial consultant in this free video on credit counseling. Expert: William Rae Contact: www.hbwfl.com Bio: William Rae has been licensed in the insurance and financial fields for more than 30 years. Filmmaker: Christopher Rokosz More Raise Credit Score Articles
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