Your Credit score can either save you money or cost you money, it can stop you from getting a job, and keep you from getting insurance. It pays to understand what you can do to make it the best it can be.
Things You'll Need
- A copy of your recent credit report, you can get a report free through annualcreditreport.com or free from mortgage lenders.
30% of your credit score is attributed to credit balances.
Keep your existing balance at or below 45% of your limit available on your card.
It is therefore important that all creditors report the available credit - or high limit on your credit report - or it harms your score. So get the credit to add the limit to your report, or don't do business with them.
35% of your score is made up from your actual payment history.
Whatever you do, make your payment within 30 days of the due date.
Only 30 + day lates will appear on your credit report
15% of your score is based on credit history.
So it is important not to close your credit accounts that have been opened for a long time with a good rating.
Longer Credit History equals a higher score.
Keep a good mix of your accounts.
A good mix would consist of 3-5 credit cards, an installment loan ( auto), a mortgage rating.
Also Inquires impact your score by 10% - each inquiry can impact your score by 5 points.
Tips & Warnings
- Steps to take to increase your credit score by 100 points.
- 1. Pay past due accounts
- 2. Get rid of Late Payments
- 3. Have credit limits increased on high balance loans
- 4.If you need more credit, become an authorized user on a family member account
- 5.Do not close open accounts, keep them active.
- When applying for a loan do not pay off collections or judgements during the loan process, it will reduce your credit score. do not do any inquires or open any new accounts when applying for a loan.
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