10 Sure Ways to Raise your Credit Score
Your credit score is the 2nd most important number next to your social security number.If you don’t want to pay cash for everything you buy,you will need a good credit score. you need good credit score to buy big ticket item like house, car etc. Now a days you can’t even get an apartment without the landlord checking your credit score.In this rough economy most employer check your credit score to hire people. Your credit score reflects how organized you are in your personal life. Below we listed 10 things that will help you boost your credit score quicker.
1. Pay all your bills on time. This goes for all bills – credit card bills, utility bills or parking tickets. Paying all your bills on time improves your credit scores and also gets you in the habit of settling your bills and ensures you learn and get into the habit of living within your means.
2. Pay off any past due accounts. It is especially important to pay off any bills that you are able to settle fully. This ensures that they do not hurt your credit score any more than they already have. Also concentrate on paying off those that have been outstanding for the longest period of time.
3. Keep your credit card balances low, relative to the limits. What matters most in the credit card debt is not so much what the actual figure is but what proportion it is of the limit. Thus a $1,500 balance on a card with a $3,000 limit is actually worse for your credit than a $3,000 balance on a card with a $10,000 limit.If you want to keep an excellent credit score,DON’T use no more than 10 percent of your credit limit. So on a $1000 credit card, don’t spend more than $100 in a billing cycle.On the same note , people have misconception that if they spend most or all of their credit limit but pay that off that money by the end of billing cycle,it will not hurt their credit limit. It does not matter how much you pay off every month, you should spend less than 10% of your credit limit.
4. Correct any errors on your credit reports. One of the fastest ways to improve your rating is to look carefully through the reports and have any errors, mistakes or un-updated information in them corrected as soon as possible.you can send a letter to the credit bureau with your information or create an account online to notify them about error on your report. you can more information about fixing error on FTC website.
5. Don’t take credit unless it is necessary. If you can pay off a substantial amount for a big-ticket item, by saving for it for example, that will reduce the amount of credit you have to take in order to purchase the item. Be particularly careful about store credit offered on a store card – read the fine print on all these.
6. Avoid consolidating all your debts onto one card. Putting all the debts on one card has often been touted as a smart move but it often isn’t. This usually makes one card go beyond or close to its maximum limit and that is usually more harmful. It’s actually best to spread your debt over several low interest cards.
7. Don’t close older or unused accounts. The length of time that you have had good credit always helps improve your credit scores. So if you have an old account that you have paid off or have not used even for a while, but on which you made regular, un-skipped payments you should keep it open as the historical information on it is to your advantage.
8. Negotiate with creditors. It is important to ensure that your creditors do not get to the stage of turning your debt to a collection agency as that will cause major problems with your credit. It is always better to explain any difficulties you may have in payment with your creditors before you start defaulting or delaying payments.
9. Get a credit card. If you do not already have a credit card, you should get one, and start making payments on it on time and regularly. That way you will build a history of being financially responsible and improve your credit score.
10. Add variety to your credit mix. You may boost your credit score by diversifying the types of credit that you have. This you can do by buying an item on an installment plan and ensuring that you are on time with every payment. You could also take a small loan at a low interest and keep repaying it on time.