How can I improve my credit score?
Published by admin on November 25, 2009
How can I improve my credit score?
There are many ways a person can improve their credit score, in the following article we are going to show you 5 ways how exactly you can improve your credit score.
1. The best way to improve your credit score is by paying your monthly bills on time. Not paying your bills on time is the number one factor of credit score drop. So this means that the longer you are going to pay your bills on time, the better your credit score will be. FOr example if somebody has a credit score of 700, if they are going to pay their bills on time for one month, they will see a credit score rise as big as 20 points, all this in just one month.
2. Another great tip for keeping a high credit score is to keep the balances from your credit cards low. For example if you max out your credit cards, you could see a drop in your credit score as much as 70 points. Do everything you can each time, to keep your credit card balance low.
3. It’s always best to not open new credit cards that you dont need right now. This will lower your average account age, and it’s making your credit score lower by up to 10 points.
4. You can have credit cards, but you will need to manage them resposibly. If you have credit cards, and you are paying the credit card debt on time, you will have a better credit score than a person that has no credit cards, and no history in paying them on time. The credit card company must see that you are a responsible person that is paying his debt, and to see that their system works, in order to give you a higher credit score.
5. Closing an account will not make it go away, if you close an account, this will show in your credit report, and the financial institutions will take the right action, making your credit score lower.
We hope that these 5 ways how to take care of your credit score will be useful for you, and that you will take them into consideration from now on.
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