10 Ways to Improve Your Credit Score

February 14th, 2014 | Author:

[A]re you trying to raise your credit score to qualify for a mortgage or car loan? Would you like to get approved for a fantastic rewards credit card? Here are ten things you can do that will improve your credit score over time.

1. Pay your bills on time. Late payments hurt your credit score about as much as anything, so paying your bills by the due date will help it. This is not an overnight solution, but will be reflected each month by small improvements.
2. Reduce credit balances. This is one of the fastest ways to improve your score. Aim for 30% to 50% balances to see the biggest jump.
3. Limit new credit. Even though you are trying to improve your credit history, don’t open too many accounts at once. Choose one to add that you are fairly sure you will be approved for and then make payments on time. New accounts decrease the average age of credit, which can hurt your score.
4. Think twice before cancelling a credit card. Cancelling a card you’ve had a long time will result in a reduction of the length of credit history. Also, if it has a higher credit limit, this will impact the amount of credit to debt ratio and can hurt your credit score.
5. Check your credit report. Make sure everything on your credit report is accurate, especially if it has to do with any loans or credit cards. Review your credit report at least once a year.
6. Understand reason codes. When you are turned down for credit, the creditor has to send you information on why. It is also included on your credit report for why your credit is not as good as it should be. This will tell you what you need to improve on.
7. Turn down credit offers. Don’t take on new credit even with a zero balance when you are trying to get a loan.
8. Don’t increase your credit balance when you are trying to get a loan. You don’t want to look like you need credit.
9. Use credit responsibly. If you have had problems in the past, don’t stop using your credit out of fear. Just make sure to pay off the balance each month.
10. Don’t pull your credit report too often. Even though it won’t hurt your score, you won’t see improvements.

Newest Answers

Big Changes Coming to Credit Reports

August 18th, 2017 | Author:
h

[I]f you have a bad credit score, you may benefit from the changes coming to credit reports soon. If you’re one of the lucky ones, you’ll see your credit score improve. In fact, it is expected that up to seven percent of those who have credit histories could see a benefit. What Changes Most civil […]

Continue Reading »

Be Realistic When Budgeting to Get Out of Debt

August 17th, 2017 | Author:
h

[Y]ou’re deep in debt and you want to pay it off to improve your credit score and to make life simpler. You want to pay it off as quickly as possible, which means making some major changes in your finances and life. Many experts tell you to stop spending any more money than you have […]

Continue Reading »

3 Ways You Can Waste Your Money

August 11th, 2017 | Author:
h

[I]f you’re trying to become more financially stable and improve your credit rating, you must be careful with how you spend your money. While you don’t want to give up everything fun in life in order to be frugal, you also want to avoid wasting your money on unnecessary expenses. Here are three ways people […]

Continue Reading »

Starting Over from Bad Credit

August 9th, 2017 | Author:
h

[Y]ou hit rock bottom with your credit. All of your accounts went to collections and your car was repossessed. You don’t even want to check your credit score because you know it’s bad. While the situation might seem hopeless, you can turn it around. Once you’ve lost any credit worthiness, you are ready to work […]

Continue Reading »

How to Talk to a Boyfriend/Girlfriend about Their Credit Rating

August 7th, 2017 | Author:
h

[I]f you’ve been dating someone for a while, you may be getting serious. Before you start dreaming about the perfect wedding day or what life will be like with 2.5 kids and a dog, you need to know you’re on the same page about important issues. While many people think nothing of talking about how […]

Continue Reading »

3 Ways Credit Matters to Everyone

August 4th, 2017 | Author:
h

[Y]ou pay everything with cash. Your motto is “If I can’t pay cash, I can’t afford it.” That means no credit ever. You may assume that you don’t need to worry about your credit score if you don’t plan to use credit to buy anything. Unfortunately, credit isn’t just about loans and credit cards. A […]

Continue Reading »

3 Tips to Help Your Kids When They Have Summer Jobs

August 2nd, 2017 | Author:
h

[I]f your kids are old enough to take on a summer job, now is a golden opportunity to teach them about money and finances. If you start them out right, they will know how to handle money and financial responsibility for when they are earning a full-time income. Here are three tips to use this […]

Continue Reading »