5 of the Basics for Improving Your Credit

Do you think that your credit score does not matter then think again?

Your Credit scores will affect many aspects of ours lives.  That’s why it’s important to keep your score as high as possible.

Paying bill on time, and staying below you credit limits will help build and maintain your credit score. Here are some lesser-know strategies to help boost your credit score.

Fixing the Clerical errors
Checking your credit report and fixing the errors are key to help boost your score.  Here is an example, it can make a big difference to your credit score if your credit limit for a card is understated.  Let’s say that you owe $5000.00 and your limit is $15000.00.  That means you owe 33% of you limit.  You will want all your credit card balances to be 33% of the max limit.

When you fix errors or are taking actions steps that will boost your score, make sure that all three main credit-reporting agencies know about it.  You will want to pull your credit report once a year so that you can keep up on the errors.

Very few people think of simply asking for what they want. In order to help you pay down your debt more quickly, you might ask your lender to lower your interest rate.  If you have one or two late payments you can ask your lender if they can be eased, in a “goodwill deletion.” Lenders are likely to be responsive to their best customers.  If you are dealing with a collection agency over some debt, see if they will delete it from your record if you pay it off.  These are all good ways to help increase your credit score.

You will want to think twice about closing your cards.  Closing an account can actually ding your credit score.  Oddly enough a host of seemingly sensible moves can hurt it, such as using just one card for most of your charges.  You will want to have two or three cards open with charges on them.

Prevent bad marks from being added to your report.  A valuable tip for anyone selling a home for less than what they owe on it.  This is called a short sale and if you end up owing many thousands of dollars to your mortgage lender, you will want to get it in writing before the sale closes that the debt won’t go on your credit report.

If you looking for a high credit score then you will want to follow the steps above to help keep your credit sore as high as possible.



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