Tips For Improving Your Credit Score
Improving your credit score takes time and due diligence. Because your credit score affects many things including your ability to get a loan, the percentage rate at which that loan will be issued, employment opportunities and even the price of your home and auto insurance, you should always strive to maintain or improve your credit score.
- Obtain a copy of your credit report. Then report any inaccuracies to the three major credit bureaus: Equifax, Experian and TransUnion. You can request one free copy of your credit report every twelve months.
- Pay bills on time, all the time. Late payments reflect a lack of financial responsibility and will negatively affect your credit score. To save time and hassle consider having reoccurring bill paid automatically from your bank account.
- Pay down credit card debt. One factor that greatly influences your credit score is the ratio between the utilization of your cards and the available limit on those cards. The closer you are to your credit limit the lower your credit score will be. To make the ratio seem larger, contact your credit card company and ask them to raise your credit limit. Only do this though if you are responsible enough not to charge anything else on the card.
- Do not apply for multiple credit offers within a short period of time. Multiple credit applications are a red flag that the borrower may be in financial trouble. Instead apply for one card and use it wisely before applying for another.
- Avoid credit card scams. Do not believe ads for companies that say they can "erase your credit history,” “remove negative marks from your credit report” or “guarantee you results.” While they often may dispute incorrect information, they cannot remove negative marks if in fact they are true. Instead you just have to wait for them to age off.