How to Improve your Credit Score

Learn how to raise your credit score with this step-by-step program.

Instructions

Difficulty: Moderately Easy

Things You’ll Need:

• Credit Report

1. Order your credit report from all 3 bureaus at: www.annualcreditreport.com.
   
   It's the only FREE source for all 3 credit reports. The government mandated that the credit bureaus give everyone a copy of their credit report for free, once every year and this is the site that they created so that you can get them all in one place.
2. Review your credit report for inaccuracies and follow the steps indicated at the end of each report to dispute inaccurate information.
   
   If you choose to do this with the assistance of a reputable credit repair company, you may achieve better results. www.perfectcreditcompany.com is an affordable company that has been recognized as the best Credit Repair Company on the internet.
3. Once you have cleared up any negative items that need to be resolved, start creating a Good Credit History by shopping for a credit card. Creditcardsearchengine.com is an excellent source of information and the easiest way to find a credit card that meets your needs.
   
   There are a lot of incentives creditors offer like sky miles, points, dollar rewards, etc. Choose the card that best suits your needs.
   
   Read the "terms and conditions" to make sure there are No annual fees, monthly fees, or start-up fees.
   
   Make sure the interest rate is not too high. Look for 6-9%. (If you already have a credit card, call them and ask them to lower your rate.)
4. For best results, Maintain a low balance-to-limit ratio on your Credit Card. That means spending only 30% of your available credit. This will show creditors that you can use your credit wisely and you will become eligible for more credit.
   
   A good strategy is to use your Credit Card simply to leverage your money from month to month. Pay for the things that you would normally pay for in cash, using your Credit Card. And then, use that cash to pay your Credit Card bill. Never pay only the Minimum Balance.
5. Once you are doing well, with one card, start to open additional accounts. Everyone should have 4 revolving accounts and at least one installment account:
   
   1. VISA
   2. AMEX
   3. Gas Card
   4. Department Store
   
   This is what we call a good “credit mix™”. This credit mix counts for about 10% of your credit score.
   
   If you keep all of these cards at a 30% balance, your credit score will increase. Don’t think that paying only the minimum payment will help your score. Even if it is on time, it’s best to keep your balances as low as possible.