Sunday May 22, 2022

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Want a Higher Credit Score? Here's How
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If you want to raise, or boost, your credit score, we have some good news for you: Everything you need to do to raise or improve your credit score you can do yourself. There are credit repair companies who promise to fix your credit for a fee, but there isn't anything they do that you can't do yourself. Before we take you step-by-step what you can do to raise your credit score, let's review for a moment how credit scores are determined and how they work:

Most credit scores range between 450 and 850. The higher your credit score, the better chance you have of saving a lot of money on virtually everything you finance, from a home or refinance, auto loan, even credit cards. Your credit score can even affect your insurance rates.

At stake can be tens of thousands of dollars or much more over the life of a consumer. The good news is that credit scores are constantly changing.  Recent payment history is what affects your score more than anything else.  One late payment in the past three months can lower your score more than a 90 day late several years ago.

Here's a quick rundown of how you can improve your credit score:

  1. Check your credit report to make sure everything is accurate. Negative information on your credit report will lower your credit score so you certainly want to make sure the information as reported on your credit score is correct. If you discover items on your credit reports that you believe to be incorrect, you can contact each of the credit bureaus to file an online dispute form.
  2. Make all of your payments on time. Even one or two late payments can seriously lower your credit scores. If your credit score has been damaged by late payments, maintaining excellent payment records even for three months, six months, a year or more will begin to improve your credit score. If you've had a rough time with credit, don't get discouraged. Make your payments on time, because your credit score can change much faster than you might imagine, and you don't need to pay a credit repair agency to help you. You just have to do your own credit repair by changing your credit payment habits and paying your bills on time. Don't take on too much debt.
  3. Avoid applying for too much credit. Credit applications create credit inquiries and these will lower your score slightly. Checking your own credit score and report will not lower your credit score.
    Pay down your credit balances. By paying down your balances, you will be increasing your debt-to-available-credit ratio and this will normally increase your credit scores.
  4. Limit the total amount of credit cards that you hold, and maintain a healthy balance of credit accounts: installment loans, real estate/mortgage loans, credit cards, retail cards.

See: Understanding Your Credit Score

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