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Better Your Credit Score Quickly and Easily
Learn how to manage your credit score and improve your creditworthiness
Think of your credit score as a picture of your credit risk. This picture reflects your risk at a specific point in time. A picture does not change; however, when you take another one, you will probably look a little different. Similarly, when your credit information changes, your score will also change to reflect the updated information.
There are steps you can take to ensure that each time a new “credit picture” is taken, it shows your best side. By observing the following guidelines, you can influence your credit worthiness for the better:
- Be punctual- Pay all your bills on time. Late payments, collections, and bankruptcies have the greatest negative effect on your credit score. Stay organized with your bills and set up automatic bill pay or have reoccurring bills such as auto insurance or utility bills deducted from your checking account to make sure they get paid on time.
- Check your credit report often – Don’t let your credit health suffer due to inaccurate information. If you find an inaccuracy on your credit report contact the creditor associated with the account or the credit reporting agencies to correct it immediately. A very large portion of negative information that gets posted to credit reports is made in error. Make sure your credit report is not containing errors.
- Watch your debt – Reduce the urge to "charge it". Credit card debt adds up quickly and paying it off can sometimes take years and the interest that accrues can be more than the purchase. Keep your account balances below 50% of your available credit. For instance, if you have a credit card with a $1,000 limit, you should try to keep the balance owed below $500. Make sure to pay your credit card bills on time.
- Build a good track record – Time is one of the most significant factors that can improve your credit score. Establish a long history of paying your bills on time and using credit responsibly. You may also want to keep the oldest account on your credit report open in order to lengthen your period of active credit use. Let your credit report show creditors you are faithful in your commitment to pay your debts, this is one of the largest factors in getting new credit or extended credit.
- Avoid excessive inquiries – have a plan before you start asking for credit or making large purchases. Check your credit report yourself first before you attempt to make large purchases on your existing credit or ask for more credit with a new creditor or extend your credit with an existing creditor. A large number of inquiries occurred over a short period of time may be interpreted as a sign that you are opening numerous credit accounts due to financial difficulties or overextending yourself by taking on more debt than you can easily repay.
Free credit score and reports from the links below
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